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MATIC Price Prediction: Polygon’s Bid For $1.5 Challenged As Consolidation Takes Effect

Last Updated August 2nd 2021
2 Min Read
  • MATIC dances marginally above $1 while supported by the 50 SMA on the four-hour chart.
  • The transaction history model suggests the prevailing consolidation will last longer.
  • An impending Bollinger band squeeze points toward a possible breakout in the coming sessions.

Polygon’s uptrend was steady from support at $0.62 until the price hit levels marginally above $1. Bulls continue to fight around the clock to break above the crucial hurdle at $1.2, but their efforts seem to go unrewarded.

At the time of writing, Polygon is trading at $1.05, while the 50 Simple Moving Average (SMA) on the four-hour chart provides immediate support. If this support gives way to the increased bearish jabs, the smart contract token will seek the last line of defense at the 200 SMA before exploring areas under $1.

MATIC Price Sluggish Price Action To Prevail

The short-term technical indicators show that sellers have the upper hand or can surmount the bulls’ power in the coming sessions. A recent golden cross pattern failed to support Polygon’s bid for $1.2 and $1.4 levels, respectively. Instead, the price continued wriggling around $1.

At the moment, holding above the 50 SMA is crucial for the resumption of the uptrend. However, if shattered, pressure will increase toward the 200 SMA. A daily close under $1 will likely trigger massive sell orders as bears swing into action to push MATIC back to $0.62.

Similarly, the Moving Average Convergence Divergence (MACD) has a minor bearish impulse. This bearish signal occurred recently as the 12 exponential moving average crossed below the 26-day EMA. If the MACD upholds movement toward the mean line, we expect Polygon to break the stalemate with a move under $1.

MATIC/USD four-hour chart

 MATIC/USD four-hour chart

The In/Out of the Money Around Price (IOMAP) brings to light two crucial levels, a massive resistance at $1.07 and robust support at $1.01. As long as the seller congestion at $1.07 remains intact, Polygon will not ascend to $1.2 and $1.4.

On the downside, 5,300 addresses bought 127 million MATIC around $1.01 and are likely to absorb the developing overhead pressure. With this support intact, Polygon’s consolidation period will extend.

Polygon IOMAP model

Polygon IOMAP model

The four-hour Bollinger bands illustrate the ongoing consolidation. This technical indicator follows the asset’s trend and helps determine if prices are high or low on a relative basis. As the bands tighten (squeeze) mainly during periods of low volatility, it implies that a sharp move in price is probable in either direction (up or down). The area between the upper band and the lower band is relatively a no-trade zone. However, a breakout above or below this area helps validate the direction the trend will take.

MATIC/USD four-hour chart

 MATIC/USD four-hour chart

Therefore, Polygon is expected to move in the near term, and traders should watch out for the Bollinger bands to confirm the direction of the breakout. Note that this tool is not usually used alone but alongside other technical indicators.

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