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Polygon Shrinks 4%, MATIC/USDT in a Descending Wedge Above $1

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The future is interoperability and collaboration. It is a trait Polygon exemplifies. 

As one of the most valuable crypto projects, their ambitious founder tapped on Ethereum’s failures. Polygon is now a drawer of investors and one of the top performers year-to-date.

Polygon Market Performance

As of writing, MATIC prices might be contracting, dropping four percent on the last trading day, but the MATIC/USDT uptrend is still valid. Buyers stand a chance, especially if prices hold steady at spot rates and, most importantly, above $1.

There could be fundamental factors to prop Polygon. One of them is its growing ecosystem of dApps and sprouting of DeFi protocols. 

Since Polygon is EVM-compatible, this is possible—and a net positive for MATIC prices by extension. 

Besides, the revival of DeFi would, as reading from past events and historical price performance, support MATIC, propping bulls and helping them absorb the selling pressure from sellers.

Technically, it is not hard to see that MATIC—unlike most DeFi tokens—stands a chance. For one, corrections of May and June weren’t as deep for traders to sound their alarms. 

Secondly, $1 remains psychological support and a round number. However, from a pessimistic lens, there is a reason for traders to stay apprehensive.

Polygon Price Daily Chart for July 8

MATIC bulls’ failure to close above the descending wedge and the middle BB, as visible in the daily chart. The second is the low level of participation and MATIC prices trending within the May 19 bear bar. From a volume analysis perspective, this is bearish.

Still, confirmation is necessary. As long as $1 holds, Polygon bulls remain upbeat.

It is easy to see why:

Whales are Accumulating MATIC

Even though MATIC prices are moving within tight ranges inside a descending wedge and May 19 bear bar, they are steady above $1, which is positive. 

Undoubtedly, bears are dominating—reflecting the apprehension across the market. 

But there is whale accumulation that supports MATIC prices, keeping the uptrend intact.

As long as MATIC is near parity with the greenback, another trader, BSCCommunity, is convinced the current level is the best zone for loading the dips. 

He projects MATIC/USDT prices to break above the immediate resistance trend line and reach $1.5 in the subsequent sessions.

Wait for MATIC/USDT high-volume breakout above $1.2, BTC and Ethereum are Weak

Although traders are confident, some recommend patience, adopting the wait-and-see approach until, at least, after a confirmation. It is because both ETH and BTC are generally weak, giving up gains of early this week. 

As base currencies and closely watched assets whose movements directly affect altcoins, including MATIC, traders ought to first wait for trend definition.

Bullish as he may, Sporia, based on the 12 HR chart of MATIC/USDT, anticipate a surge to the upside, closing beyond $1.2.

Sporia--Polygon

Accompanying this surge must be comparatively high trading volumes closing above the 50 MA of the volumes chart. 

Once this happens, the analyst aims to swing trade, setting sights on $1.5 in the short term.

MATIC Bulls Aiming at $2.7

Once there is a breakout above the upper trend line as visible in the daily chart, another trader on Trading View, adoringPear61932, calls for a moonshot towards $1.5 and later $2.7

adoringPear61932--Polygon

The latter marks May 2021 highs and would be a retest in a buy trend continuation pattern.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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