The price of Polygon‘s token, MATIC, has dropped significantly, following the trend of most major cryptocurrencies during the recent market sell-off. Since the third week of March, MATIC has decreased by 46%, now trading at $0.69. Factors such as geopolitical tensions in the Middle East and Bitcoin‘s pre-halving correction are contributing to the market’s bearish sentiment. However, could there be an opportunity for buyers of MATIC to mount a comeback?
Will the Historical Support Trendline Trigger Another Rally?
For approximately two years, the price of Polygon’s coin has moved sideways in a steady yet narrowing range, following a symmetrical triangle pattern on the chart. The converging trendlines within this pattern function as both resistance and support levels, signifying an equilibrium where buyers and sellers are evenly matched. Neither side holds a clear advantage, resulting in a balanced market situation.
The MATIC price is currently experiencing a loss of 3% intraday and appears to be making its way towards the pattern’s lower trendline, which is at $0.58. Looking back at past data, we can see that in June 2022, after hitting this support trendline, MATIC experienced a significant rally of approximately 375%. Conversely, in October 2023, following a bounce from the same trendline, there was a surge of around 153% in price.
In simple terms, the price of Polygon is expected to see increased demand around $0.6 to $0.58, indicating another price increase. The upcoming Bitcoin halving could further fuel this trend and lead to a positive turnaround for MATIC.
If the demand remains robust at this crucial support point, there’s a good chance that buyers will begin a fresh bull market after the triangle formation, possibly causing prices to climb by up to 70-75%, reaching the upper trendline approximately at $1.2.
Keep in mind that the MATIC price may have a greater chance of continuing its recovery if buyers manage to surpass the triangle’s upper limit.
In simpler terms, if the price of Polygon coin falls below its current downward trendline, this could indicate a significant decline in its value.
Technical Indicator
- BB indicator: The downtick in the lower boundary of the Bollinger Band indicator highlights the sellers are the current dominating players in this asset
- Vortex Indicator: The widespread VI+- and VI- slope indicates no sign of bullish reversal yet.
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2024-04-15 23:06