MATIC Price Prediction: Polygon Bull Chase For $2 After Cracking $1 Barrier
- MATIC price makes haste above $1 after a massive dip to $0.62.
- Polygon trades above crucial moving averages, including the 200 SMA, as the uptrend hold above $1.
- The transaction history model shines a light on a massive resistance that could invalidate the uptrend.
Polygon sustained the recovery from support at $0.6 to the extent of closing the weekly massively in the green. The bullish outlook continued on Monday, with MATIC spiking more than 15%. A weekly high has been traded slightly above $1.12, with the token exchanging hands at $1.08 at the time of writing.
Intriguingly, Polygon made it above several moving averages, including the 50 SMA, the 100 SMA, and the 200 SMA on the four-hour chart. The most significant breakout occurred on breaking above the 200 SMA, a hurdle highlighted at $1. Meanwhile, bulls are focused on gaining traction toward $1.4 and $2, respectively.
Polygon Bears Continue Losing Their Edge
Polygon is mainly in the bulls’ hands during the European session. Holding above $1 or the 200 SMA is crucial for gains eyeing $1.4 and $2. It is worth keeping in mind that the trend also favours the buyers, especially after a buy signal presented by the Moving Average Convergence Divergence (MACD) indicator.
The MACD buy signal adds credence to the optimistic outlook. This technical indicator, which follows the path of a trend and calculates its momentum, turned bullish within the four-hour time frame for the first time since July 20. As the 12-day exponential moving average crossed above the 26-day exponential moving average, the odds for a bullish impulse increased significantly.
MATIC/USD four-hour chart
Another potentially bullish chart formation is a golden cross pattern, expected to come into the picture in the incoming session. This technical pattern is created when a short-term moving average crossed above a longer-term moving average. As Polygon scales above $1, the 50 SMA will eventually cross above the 100 SMA.
The appearance of a golden cross pattern adds weight to the bullish outlook and implies that gains are bound to continue, and Polygon will consolidate at a much higher price level.
Looking At The Other Side Of The Picture
The IOMAP on-chain model that tracks the addresses that have bought MATIC shows that the token could have reached its recovery elastic limit. This follows an enormous selling zone, running from $1.18 and $1.21.
According to the transaction history, around 2,800 addresses previously purchased nearly 89,500 MATIC in the range. Note that trading above this will be an uphill task for the bulls.
Polygon IOMAP On-Chain Metric
On the flip side, colossal support has been established between $0.98 and $1.2. Here, 2,500 addresses bundled up approximately 75,000 MATIC from this zone. In other words, Polygon is well protected on the downside. Therefore, we expect consolidation around $1 to take precedence if the breakout to$1.4 and $2 fail.