Polygon MATIC price, once again, displayed relative strength with the June 15 price breakout from a symmetrical triangle pattern. Still, the bullish price action has quickly faded, pushing Polygon price to a critical area of support. The Polygon needs the current price range to hold or risks breaking the longstanding trend line from the beginning of 2021.
Polygon price jumped almost 60% from the June 12 low until the June 15 high, breaking with the indecisive tendencies of most altcoins. Trade Volume increased during the brief streak higher, but it fell well short of the level that accompanied the price rebound off the May 23 low, suggesting that Polygon Matic speculators were still reluctant to engage the market with significant commitment.
Polygon price has declined almost 30% from the June 15 high, overcoming support level at the 50-day simple moving average at a price of $1.42 before the current test of the confluence of the anchored trade volume-weighted average price at $1.33, with the 2021 rising trend line level and the symmetrical triangle’s lower trend line.
For now, Polygon Matic investors should wait for a daily close below the well-established support level mentioned above to rethink their bullish narrative. If MATIC's price closes below $1.25, it will be the initial signal that the altcoin may be readying for a new leg lower. A daily close below the June 12 low price of $1.12 would be the necessary confirmation that a change in trend has occurred.
If the Matic bullish narrative endures this retracement, Polygon market operators should visualize resistance materializing at the intersection of the psychologically important $2.00 and the May 31 high price of $2.04.
An energized cryptocurrency market may carry Polygon MATIC price to the May 26 high of $2.48 and potentially, the all-time high of $2.89, recorded on May 19.
It is important to note that the bullish alternative is not forecasting a relentless advance but a measured, frequently interrupted evolution.
A close below $1.12 changes everything for Polygon MATIC price. It would be a blow to the powerful uptrend since the beginning of 2021, forcing a complete reevaluation of the bullish governing narrative for the year.
Supporting a favorable outlook for Polygon MATIC price is the Santiment Daily Active Addresses metric that has recently turned higher. The metric shows the number of unique addresses involved in Polygon MATIC transactions daily. It indicates the daily level of crowd interaction or speculation with a token. Higher numbers tend to be bullish.
Since June 9, the daily advance addresses have turned high, accelerating the uptrend in the 7-day average that bottomed on June 5. One caveat to the metric bullishness is the break of the rising trend line level for the 7-day average since the end of April. It may be nothing but this is still a factor to watch if Polygon MATIC price gains price traction.
Another complementary on-chain metric is the Santiment Supply on Exchanges metric that shows the total amount of Polygon MATIC located in known exchange wallets. Spikes in this metric tend to indicate a spike in short-term selling pressure.
Since the May high for the metric, the supply on the Polygon MATIC exchange has been declining and has crossed back below the 30-day average, suggesting the exhaustion of selling pressure in Polygon. It is an encouraging sign in a period of uncertainty and increased volatility in Polygon MATIC price.
Polygon Matic is receiving an increase in attention for its answer to some of the challenges confronted by the Ethereum blockchains, such as heavy fees, poor user experience, and low transactions per minute. It is involved with the timeliest areas of cryptocurrencies, including Defi, DApps, DAO’s, and NFT’s.
Despite the flattering on-chain metrics and compelling fundamental story, the Polygon MATIC price is now hanging in the balance with few remaining technical support barriers between it and a completely different script.
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