- Polygon bulls close the gap to $1.2 after holding the 200 SMA.
- MATIC uptrend may shoot massively upward after the price cracks the descending parallel channel resistance.
Polygon has in the last few days stayed afloat above $1. Although bears called for a breakdown to $0.75, bulls purposed to bring forth another recovery attempt.
The 200 Simple Moving Average (SMA) support on the 12-hour chart allowed bulls to take control. At the time of writing, MATIC is exchanging hands around $1.14 amid an ongoing push for recovery by the bulls.
MATIC price eyes colossal upswing toward $2
Polygon is gaining traction in the wake of sustaining the price above the 200 SMA, as mentioned. Another significant milestone is to close the day above the descending parallel channel’s upper boundary. This move will bring MATIC close to the 50 SMA and allow bulls to settle past $1.2. Realize that a daily close above this level will push Polygon further up, but it is essential to keep in mind the resistance at the 100 SMA.
MATIC/USD 12-hour chart
The Relative Strength Index (RSI) validates the uptrend after closing the day above the midline. If the RSI stretches toward the overbought region, we can expect Polygon to make haste through the hurdles highlighted above.
A comprehensive look at investor activity from the on-chain perspective shows that selling pressure is dwindling at a higher rate. For example, the amount of MATIC pushed into the exchanges has continued to drop from the recorded highs in June. With fewer tokens deposited on exchanges, it implies that investors prefer to hold, perhaps waiting for another uptick in price.
Polygon network growth model
What may invalidate MATIC price upswing?
Polygon appears to be closing in on a robust resistance highlighted between $1.25 and $1.29. Here, nearly 2,400 addresses previously purchased roughly 600 million MATIC. If bulls cannot crack this hurdle, we expect Polygon’s uptrend to $1.4 to either delay or be abandoned altogether.
Polygon IOMAP model
On the downside, support areas appear to be weakening, a situation that may accentuate the potential retreat. Minor support holds between $1.11 and $1.15. It is essential to sustain the price above this zone. Otherwise, declines may gain momentum, renewing the bearish calls toward $0.75.