MATIC Price Prediction: Polygon Breaks Out Above $1, Time To Sell?
- MATIC sustained a V-shaped recovery to highs of $1 before slowing down.
- Support at $1 must hold; otherwise, a correction may ensue, targeting $0.62.
- The transaction history model reinforces the massive support provided for Polygon at $1.
Polygon recovery has been sharp and consistent from July's support at $0.62. The smart contract token made hast above $1 but failed to break the hurdle at $1.2. In the past few days, Bulls struggled to keep the price above $1, especially with surging overhead pressure under 1.2.
At the time of writing, MATIC trades at $1.03 amid a pivotal price action around $1. In other words, a stalemate between the bear and the bulls prevails. The rock-hard support and resistance are accentuated by the 100 Simple Moving Average (SMA) and the 50 SMA on the 12-hour chart.
It is worth keeping in mind that gaining ground above the 100 SMA will enhance the bull's presence in the market. On the downside, a confirmed break below the 50 SMA could see losses stretching to $0.62.
MATIC Price V-shaped Recovery In Jeopardy
V-shaped recovery resembles the letter 'V' as the name suggests. It involves a sharp drop in an asset's price, such as Polygon's drop to $0.62 followed by a quick and sharp rise back to the previous peaks.
Investors expected the recoil to continue to $2, but the general technical levels cast doubt on the uptrend holding steady. A buy signal from the Moving Average Convergence Divergence (MACD) indicator boosted the price into the V-shaped recovery. However, the same MACD coon flash a sell signal.
As the MACD follows Polygon's trend, it also calculates its momentum. A 12-day exponential moving average (EMA) crossing beneath the 26-day EMA sends a call to sell MATIC. Thus, investors would be encouraged to empty their bags, sending Polygon to explore areas under $1.
MATIC/USD four hour chart
Why Consolidation Could Prevail In The Short-term
IntoTheBlock's IOMAP model reinforces the technical barriers mentioned. Hence, recovery will be a challenge in the coming days. The model directs our attention to the most visible hurdle running from $1.1 to $1.14. Here, roughly 9,000 addresses previously bought 93 million MATIC in the range. As the price rises, its momentum may be weakened in this area, further delaying recovery.
MATIC IOMAP chart
On the flip side, Polygon is relatively supported between $0.98 and $1. Here, 4,000 addresses previously scooped up 90 million MATIC. As long as Polygon stays above this zone, consolidation will take precedence ahead of recovery toward $2.