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Polygon Price At $7.60 Resistance — Is MATIC Ready To Break Out?

Last Updated April 24, 2024 12:33 PM
Nikola Lazic
Last Updated April 24, 2024 12:33 PM
By Nikola Lazic
Verified by Peter Henn

  Key Takeaways

  • MATIC’s recovery might signal bullish conditions.
  • Current calm transaction data implies no major moves.
  • Resistance at $0.76 could limit further price increases.

After ending its 55% downturn on April 13, the price of Polygon’s token MATIC started to recover. We saw a 28% increase, but the price came to horizontal resistance at $0.76, a level which previously served as support. 

Did MATIC establish its low on April 13, and have we seen the start of its next major uptrend? Or was the following recovery only a reaction to oversold conditions?

MATIC On-chain Data 

Most investors are out of money, according to IntoTheBlock’s on-chain data . Out of the total accounted Polygon addresses, 81.45% are not profitable. Meanwhile, only 14.3% bought MATIC at prices lower than its current. 

In/Out of money chart

This could imply the market’s unwillingness to sell for a greater loss, especially as the price is currently climbing, and can be potentially interpreted as a bullish sign. To expand further, when most token holders are in profit, there is a risk for profit-taking that can create a cascading effect. In contrast, when most token holders are willing to hold at a loss they provide support. 

Transaction data

Regarding the transaction data , we can see that the situation is calm. We can even see a downtrend from April 19, meaning investors haven’t been active in this last price rise. In addition, there are still no large transactions, meaning whales haven’t stepped in.

Should this change, it could ignite a new price rally for MATIC in the upcoming days, but there are still no signs of increasing interest. This calm environment can also be seen on the derivatives side. According to CoinGlass data , both open interest and funding rate have remained the same since its April 13 low. 

The MATIC heatmap chart shows a cluster around $0.77, which supports our assumption that the price would face resistance at these levels. 

Polygon (MATIC) Price Analysis 

On March 13, MATIC reached a yearly high of $1.30, rising 85% from a low of $0.70 on January 24. It made a downturn, dipping below $0.60 on April 13. This was a higher low on a macro scale compared to its mid-September last year when the larger uptrend started leading to its March high. 

4-hour chart

As the 4-hour chart RSI suggested, falling to the oversold zone of 30%, the low could be in. The following recovery brought the price to $0.76 today, the intersection between two significant resistance points – the previous horizontal support and the descending one. 

If the price finished its five-wave impulse in March, the following downturn could have been its bull cycle correction, especially as it ended on a higher low. This still needs to be confirmed and will be if the price continues to rise. 

There is a strong possibility that it will break its current resistance. If it does, our next target would be at the 0.5 Fibonacci retracement level of $0.95. If MATIC continues moving up, there will be an even stronger chance it will hit a new yearly high. 

However, if it finds resistance between $0.76 and $0.95, it could continue to move below the April 13 low and back to its support zone around $0.40. 


Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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