MATIC Price Prediction: Polygon Could Revisit $1 Support; Time to Buy the Dip?
- Polygon dives to $1.3 and looks primed for another downswing to $.
- A death cross pattern adds credence to the bearish outlook.
- The declining network growth may delay MATIC’s recovery.
Polygon fell victim to the immense selling pressure that extended from Friday into the weekend session. If the short-term support at $1.3 fails to hold, we can expect another dip toward $1 before another recovery attempt comes into the picture.
In the meantime, MATIC trades at $1.31 while bulls battle to secure higher support and stop the extended bleeding.
Why is MATIC's declining network growth a bearish signal?
Santiment’s on-chain data shows that Polygon’s network growth continues to drop, adding weight to the bearish outlook. The network growth model reveals the number of new addresses joining the protocol daily. Following an upswing to roughly 6,200 on June 15, the number of addresses has diminished to nearly 2,500.
It is essential to realize a drop in this metric negatively impacts the project’s mainstream adoption. The token value finds it challenging to sustain the uptrend because the regular inflow and outflow of tokens on the protocol is interfered with. Therefore, losses are likely to continue if the pulldown carries on.
Polygon network growth model
The technical outlook on the four-hour chart is mainly bearish, particularly with a death cross pattern forming. This pattern indicates a long-term bearish outlook and comes into the picture when the shorter-term moving average crosses under its long-term moving average. For example, the 50 SMA crossing beneath the 100 SMA suggests that bears are likely to get more aggressive in the coming sessions.
MATIC/USD four hour chart
Polygon is trading above $0.3, as mentioned above. Closing the day above this level is crucial for sustaining the uptrend. However, this short-term anchor could lead to massive losses that may revisit the area around $1.
Looking at the other side of the picture
The IOMAP model by into the block shows that it may be time to buy the dip and anticipate recovery toward the end of the week. This follows an intense buyer congestion zone between $1.12 and $1.16. Here, 141 addresses previously purchased 654 million MATIC. If this support remains untouched, Polygon’s least resistance path would be upward.
Polygon IOMAP model
On the upside, Polygon does not seem to have a robust resistance that may invalidate the liftoff in the coming sessions. Therefore, buying the dip and speculating gains above $1.5 is noteworthy.