Key Takeaways
- Polygon’s MATIC token showed signs of recovery after swelling 9.47% on Wednesday.
- Indicators forecast consolidated bullish momentum for the token in the coming days.
- On Tuesday, MATIC prices fell below the $1 mark for the first time since May 23.
New Delhi (CoinChapter.com) — MATIC, the native token of the India-based blockchain scalability platform Polygon, has been consolidating between $1.276 and $1.160 after recovering 60.5% from its May 23 low of $0.743. Meanwhile, trend indicators suggest a 20-25% gain underway once MATIC reaches its next immediate resistance level.
MATIC price trends
Despite a bearish week, the Polygon-backed token has managed to stay above its $1.04 crucial support level. The same price floor serves as a lower trendline of the descending triangle pattern. MATIC is consolidating inside it.
The chart shows strong support near the 78.6% Fibonacci level. Fibonacci levels indicate where support or resistance levels might occur. MATIC prices rebounded from the 78.6% or $1.04-level after the May 19 crypto market crash.
Immediate resistance sits at $1.42, adjacent to the 50-Day Moving Average (Green) line. MATIC is currently trading below the 50-Day MA but above the 100-Day and 200-Day MA (Violet) lines.
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On the flip side, if MATIC fails to sustain a break over the $1.42 mark, it might open pathways to downside targets of $0.92 and $0.85.
The Polygon token is trading below the 15-Day EMA (blue) line; however, MATIC prices seem to be inching upwards to meet it. Another technical indicator, the Relative Strength Index, sits at 42.14 for MATIC, a neutral score. RSI is a price momentum indicator that helps identify overbought or oversold assets. Also, Bollinger Bands remained parallel with little divergence, indicating stability in prices for the next few trading sessions.
At the time of writing, MATIC was trading at $1.192, up by 1.11%.
Polygon – What The Future Holds
Polygon (MATIC) is an Ethereum protocol and framework to improve interoperability between the Ethereum blockchain and compatible networks. Its native token, MATIC, reached an ATH of $2.62 this year, and though the market crash has almost halved its value, it still has grown by 6884.52% YTD.
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Recently, crypto-asset manager Grayscale announced 13 new tokens under consideration for investment products, including Polygon (MATIC).
Recently, Polygon tied up with Liquality Wallet to enable cross-chain bridge functionality in the Polygon ecosystem. Liquality will help users access Polygon assets and Dapps (Decentralized apps) inside a multi-chain wallet.
In May, Billionaire investor Mark Cuban added MATIC in his crypto portfolio, which resulted in a 10% jump in MATIC prices.
As such, the Polygon network doesn’t lack in fundamentals, and if the current bull run breaches the next resistance level, it could lead to more than 25% gains. Additionally, the current price rally may also invite whales to buy, which will further boost prices.
