MATIC Price Prediction: Polygon Rises Above Intense Headwinds Aiming for $2
- Polygon settled at the 50 SMA preventing a correction back to $1.2.
- Closing the day above the 50 SMA would clear the path heading to $2.
- A spike in exchange inflow and a dip in daily active deposits are key bullish signals.
Polygon bulls are not the kind to give up even when bombarded by frequent bearish missiles. In the last few days, the smart contract token has gazed at recovering the lost ground to $2. Here, massive buy orders are expected to boost the uptrend to the all-time highs of $2.8.
In the meantime, MATIC has a market value of $1.53. The uptrend from support established at $1.2 last week hit a snag at $1.7. A reversal from this seller congestion zone saw bulls seek refuge at the 50 Simple Moving Average (SMA) on the four-hour chart.
MATIC price faces one stumbling block before resuming the uptrend
Following the support at the 50 SMA, bulls are focused on gaining ground toward $2. However, two key levels stand in the way; the 100 SMA and Wednesday’s resistance at $1.7. Closing the day above the hurdle at $1.7 is crucial to extending the bullish leg toward $2.
MATIC/USD four chart
The Relative Strength Index (RSI) has settled above the midline in the wake of the retracement from the overbought area. More buyers will be attracted to the market amid heightened investor speculation if the RSI gains upward traction.
Realize the Moving Average Convergence Divergence (MACD) may hold in the positive region. This means that bulls will have the upper hand, massively pushing the price toward $2.
The exchange outflow on-chain metric tracks the amount of MATIC withdrawn from known exchange wallets daily. Note that the model modifies the metric to exclude exchange-to-exchange transactions.
Spikes in this metric tend to indicate a growing accumulation trend and are a bullish signal. For instance, in the last 48 hours, Polygon’s exchange outflow soared from 5.3 million to 15.8 million MATIC.
Polygon exchange outflow/ Daily active deposits
Santiment’s data also shows a reduction in the daily active deposits of MATIC to exchanges. In other words, the metric shows the amount of MATIC deposited to centralized exchange addresses daily. Dips in this metric show Polygon faces low overhead pressure as investors prefer to hold than sell.
Looking at the other side of the fence
We must keep in mind that sellers may start to increase if the hurdles at the 100 SMA and $1.7 remain intact in the near term. On the downside, putting more pressure on the 50 SMA short-term support could lead to another price dip. Other key support levels to keep in mind include $1.3 and $1.2.