MATIC Price Prediction: Polygon Stuck in Consolidation as Colossal Downswing Looms
- Polygon price recovery loses steam as declines loom.
- The Bollinger bands emphasize the ongoing sideways price action.
Polygon has retreated extensively from its all-time high of around $2.7. Initial recovery from May’s crash to $0.75 failed to break the hurdle at $2.5. Since then, the slightest resistance path has been downward with support at $1 tested severally.
At the time of writing, MATIC teeters at $1.06 following a recent rejection from the immense seller congestion at $1.2. On the upside, buyers are working around the clock to break the barrier at $1.1. However, vivid sell signals emphasize the downtrend is gaining traction in the near term.
MATIC price breakdown under $1 nigh
Polygon seems to have entered a consolidation period that has forced the Bollinger bands to squeeze in the four-hour timeframe. Squeezes indicate low volatility periods and are usually succeeded by significant price action. The longer the squeeze, the larger the chance of a strong breakout.
Nonetheless, this technical index does not provide a clear path about the direction of MATIC’s trend. Hence, the area between the lower and upper band is reasonably a no-trade zone. Only a four-hour candlestick close above or below this area will determine where the smart contract cryptocurrency is headed in the coming sessions.
MATIC/USD four-hour chart
Polygon price potential correction has been emphasized by the Moving Average Convergence Divergence (MACD). This technical tool follows the trend of an asset and calculates its momentum. Although the MACD is not primarily used to identify oversold and overbought market conditions, it often sends signals to sell or buy the crypto.
For instance, a call to sell appeared when the 12-day EMA crossed below the 26-day EMA on the four-hour chart. It was accentuated by the MACD moving into the negative region (below the mean line). Note that the Relative Strength Index (RSI) hints at the downtrend gaining traction as it gradually draws closer to the oversold region.
Looking at the other side of the picture
A daily close above the support at $1 could ensure that losses are averted. On the upside, a new uptrend may be validated by a break above the 50 Simple Moving Average (SMA), currently holding at $1.1. Meanwhile, buyers must be keen not to lose sight of the crucial barrier at $1.2 because trading above may significantly bolster MATIC price toward $2.