Polygon (MATIC) faces slight selling pressure near 200 EMA!

MATIC Network is a Layer 2 scaling solution that uses Plasma sidechains and a decentralized network of PoS validators to scale Ethereum. MATIC uses a network of sidechains to offload transactions from the main Ethereum network. MATIC intends to create a fast and low-cost alternative to Ethereum while providing security and decentralization of the Ethereum network.

It takes advantage of sidechains and separate blockchain networks connected to the ETH network. Transactions on these sidechains are processed faster and at a lower cost than the Ethereum network, making it a suitable solution for decentralized applications needing high throughput and low transaction costs.

The valuation of MATIC remained above $5 billion even during its steepest low value in December 2022. The price action for MATIC has been in a consistent uptrend since January 01, 2023, and has scaled significant gains in the last few days. The further uptrend of MATIC depends on its breakout pattern’s intensity.

MATIC has found strong support from the $0.74 level, which is now going strong. While there has been some selling intensity at the 200 EMA, the outlook of this token remains highly bullish. The dominant buying activity seen near the 100 EMA curve has not only added confidence in MATIC and incited sellers to exit at a higher value. Read our MATIC prediction to know how this positive sentiment will affect the price of Polygon in the future.

MATIC PRICE CHART

200 EMA has been one of the most popular dumping points for sellers as the MATIC token has so far failed to breach this level without some consolidation or delay. This allows traders to make quick money on lesser risk while severely denting the positive outlook that the token has been developing over the last two weeks.

While there was a small profit booking on January 11, 2023, the day closed above the 200 EMA curve. At the same instance, 200 EMA has now become a dumping ground forcing the rally towards lower levels. The resistance of MATIC is highly active near $0.90 and a psychological level of $1. 

RSI during this short-selling activity has tanked from near overbought zones of 65 to 60. The future outlook for MATIC remains highly bullish. Since the 100 EMA and 200 EMA curve is trading close to each other, MATIC could witness a breakout attempt as long as it trades above the 100 EMA curve on daily candlestick charts.

As $1 remains within the grasp of MATIC, a massive breakout rally can be witnessed if the token continues on its track to move toward new highs with each swing. 

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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