Polygon (MATIC) takes support from its 200 EMA curve!
MATIC cryptocurrency is a positively biased token of the Polygon network that offers higher scalability. Using the Ethereum blockchain as the core object for expansion, Polygon has enabled a new method for scaling and governance by issuing MATIC tokens.
As a layer two solution, this crypto network is backed by the bigger players in the game, Binance, and Coinbase. The current standing of MATIC is 10th spot with a market capitalization of $7.5 billion and 87% of token liquidation.
Being a scaling solution, MATIC can implement any advanced and modern transition validation process to improve its speed and accuracy without needing to undergo a complex process and without compromising on security, scalability, and instant transaction completions.
MATIC token’s daily price action has shown hitting a plaque; after all, the bullish rally has been gradually gaining pace since the last couple of months. Such halts are necessary breaks to allow more buyers to take advantage of the probability of the next uptrend cycle. At present, the resistance of $1.31 has become a no-breach zone, but support has been extended by the 200 EMA curve moving downwards at $0.85. Will Polygon sustain the support? Read our Polygon prediction to know!
The price action witnessed some volatility near the FTX issue; hence the selling stance became justified. MATIC still showcased a buying-on-dip strategy and capitalized on its respect for the 200 EMA curve. Latest trends showcase a strong consolidation to take place near the moving average; going forward, it could become a base for further upside movement.
At present, the decline from $1.31 to $0.86 counts as a loss of around 35%. The RSI indicator has been back into action with a jump towards the higher neutral level of 47, while the MACD indicator is gradually trying for a bullish crossover to bring a buying sentiment.
On weekly charts, MATIC shows another uptrend opportunity, but the strong retracement to its previous levels will make it challenging for buyers to take entry considering the negative technical perspective in the long term. The current level of $0.86 could be a good entry point for making single-digit gains, but the long term still depends on its ability to breach $1.31, which is a previous support level for MATIC.
The buying rallies from $0.30 confirms the support witnessed during January 2021, but at the same time, the resistance around $1.60 could send the token spiraling back down to $1 levels. Hence, making a good exit strategy becomes important for investors at this level.