Polygon MATIC continues to show a good technical scenario, thanks to recent gains

Avatar James Lochner 2 years ago

The MATIC cryptocurrency, native to the Polygon network, has been rising strongly lately, gaining more than 130% from the low of $0.26 marked in mid-June.

At the time of this writing, MATIC is trading at $0.74. It accumulates a loss of 10,18% in the last 24 hours, as a widespread correction occurs in the crypto market.

Now it seems that everyone is waiting for the Fed, waiting for interest rates to rise again tomorrow, Wednesday. This would cause a rise in the price of the dollar, and a fall in risky assets.

In a survey conducted at the channel KEY ALERTS, we see that most think that the price of Bitcoin will go down following the Fed’s announcement, which would undoubtedly affect other currencies, including MATIC.

What’s behind Polygon’s rise?

While the bullish rally of this coin started on a par with the rally of the crypto market, the excitement quickly increased when Disney chose Polygon for its accelerator program.

The program that Disney is carrying out aims to accelerate the development of augmented reality, characters generated from virtual reality, and the issuance of non-fungible tokens (better known as NFTs).

It is not yet clear what role the Polygon network will play in this project, however, positivity immediately increased for MATIC.

MATIC has been one of the few coins that has managed to significantly compensate for the losses of the first half of the year.

This may be due to the great activity on this blockchain, which, in fact, is currently higher than when the MATIC price is at all-time highs, which means an important divergence.

Polygon wallets metric. Source: Santiment.
Metric of active wallets in Polygon. Source: Santiment.

Technical analysis of Polygon MATIC

On the MATIC vs USDT daily chart we see that the price is wrapped in a clear short-term uptrend, thanks to the continuous lows and higher and higher highs that the price has been forming.

A reversal of this trend is currently underway. It seems that the support level to visit is $0.70.

Due to the uncertainty that is being breathed throughout the risk asset market, it is possible that the ongoing fall will extend much longer, before resuming the dominant force.

To think that the bulls are back in control, the resistance at $0.95 must be overcome, leaving the ground clear for gains up to a minimum of $1.34.

Has MATIC hit rock bottom yet?

After falling to a low of $0.31, the recovery of Polygon MATIC has shown a lot of determination, heralding a possible resumption of the long-term trend.

Near $0.30 there is a large demand zone that slowed the fall. In case the price seeks to visit it again, it is likely that purchases there will be incentivized again.

Recently, we saw how the price crossed an immediate resistance on the weekly chart, located at $0.55, announcing a transition of the medium-term trend.

Now the ground is cleared up to $1.34. While we may see crypto market participants in trouble in the short term, once the turbulence passes we could see a rally of currencies like this, which have already been showing quite bullish determination.

Polygon MATIC weekly chart. Source: TradingView.
Polygon MATIC weekly chart. Source: TradingView.

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