MATIC Price Prediction: Polygon Bows to Overhead Pressure at $1.5 as Signals Scream Sell
- Polygon fails to break the seller congestion at $1.5, delaying the breakout.
- The MACD has a bullish impulse according to the short-term technical picture.
- The IOMAP model presents massive resistance and support areas, hinting at a consolidation period.
Polygon continues to slow the majestic bullish cementum that dominated the last few months. The token hit an all-time of $2.7 before retracing to $0.75 in May. A recovery pulled the token from the dip, sending it to highs around $2.45. However, this marked the end of the uptrend, paving the way for gradual losses.
At the time of writing, MATIC trades at $1.44 after recoiling from support at $1.2. The upswing from the buyer's congestion zone lost steam at $1.5, which continues to encumber the recovery.
Polygon uptrend in jeopardy
The hurdle at $1.5 has thrown bulls off-balance, risking another breakdown. According to the Relative Strength Index (RSI), the least resistance path is downward. This strength indicator tool that also identifies oversold and overbought conditions in the market. If the RSI slips beneath the midline, declines will become apparent.
MATIC/USD four-hour chart
The TD Sequential indicator is a crucial technical indicator used in identifying the positions where an asset's uptrend or downtrend exhausts itself. For example, sell signals are presented in the form of green nine candlesticks. On the other hand, sell signals manifest in red nine candlesticks.
Note that this indicator is useful when hunting for price points where one can buy or sell. For instance, the four-hour chart shows that Polygon will likely dip further in the coming sessions. A sell signal is validated when its low closes the day above the lows of the sixth and seventh candles.
Looking at the other side of the fence
The IOMAP model by IntoTheBlock shows that Polygon may settle for consolidation in the coming sessions. For instance, the region between $1.44 $1.49 hosts around 2,200 addresses that previously bought around 85.5 million MATIC. A robust barrier such as this will be challenging to break.
Polygon IOMAP model
On the downside, Polygon sits on top of an immense buyer congestion zone, running from $1.31 and $1.36. Here, 272 addresses are currently profiting from 100 million MATIC previously bought in the zone. As long as this support is unbroken, Polygon will take up sideways trading.