- Polygon renews the uptrend after a minor retreat from the ascending parallel channel.
- MATIC looks forward to another uplift past $2 to set the pace for a new record high at $3.
Polygon briefly extended the bearish leg below the ascending parallel channel. The downward price action broke the extensive winning streak, but support at $1.6 allowed bulls to regain balance. A minor recovery has ensued, with MATIC hitting the resistance at $2. The lower edge of the channel also caps price action.
Polygon bulls relentlessly fight to sustain the uptrend
Following the dip from the all-time high of $1.6, MATIC is about to reclaim the lower column of the ascending parallel channel. The 50 Simple Moving Average (SMA) reinforces the support at $1.6, hinting at the path with minor hurdles to the upside.
A break into the channel is bound to encourage more buyers to enter the market amid growing anticipation for the ultimate upswing to $3. Polygon’s uptrend will be tested at the middle and upper edge of the channel to ascertain the potential for extending the gains.
MATIC/USD four-hour chart
The ongoing recovery seems to have been cemented by the Relative Strength Index (RSI). The correction saw the RSI dive to 40 but has already rebounded to the midline. If the trend strength indicator champions the subsequent recovery phase toward the overbought area, we expect Polygon to stretch back to $2.5 while bulls eye $3.
The transaction history on-chain model, otherwise known as the In/Out of the Money Around Price (IOMAP) by IntoTheBlock (ITB), shines a light on the relatively smooth path Polygon has toward $2.5. This means that a slight upward push could see the token reaching new all-time highs.
MATIC IOMAP model
On the flip side, Polygon has been accorded immense support, likely to absorb most of the selling pressure in the near term. According to the IOMAP, the zone runs from $1.81 to $1.87. Here, around 4,000 addresses previously bundled up nearly 163 million MATIC. Therefore, declines will likely keep at bay, allowing bulls to focus only on recovery.
Looking at the other side of the fence
Note that closing the day under $2 and by extension, the ascending parallel channel will lead to a surge in overhead pressure. Therefore, it is in the bulls’ court to ensure that these milestones are achieved. Otherwise, the support at the 50 SMA and $1.6 will come under heavy pressure. If they give in to the bearish advances, Polygon may retreat toward $1.