Polygon (MATIC) is a well-structured network that provides an easy-to-use platform for Ethereum. Polygon SDK is the core component used that supports multiple application mechanisms. Polygon is a layer2 scaling solution. It aims to make cryptocurrencies widely accepted. Let us look at the technical analysis of MATIC.
On September 15, 2021, MATIC opened at $1.32. On September 21, 2021, MATIC closed at $1.05. Thus, in the past week, the MATIC price has not shown any extreme price fluctuation. In the last 24 hours, MATIC has traded between $1.02-$1.19.
After Polygon released news about acquiring Layer 2 blockchain Hermez for $250 million. Many institutions have gained trust in the company. Crypto asset managers have started including MATIC in their portfolios. After this bull trigger, the price rose to a three-month high. However, the price could not break the resistance level and fell back to its immediate support level.
MATIC is still trading as per the trendline, which is in the upward direction. Therefore, after taking support of the trend line, we can expect it to break the long-term resistance level as well.
The MACD and signal lines have entered below the zero range, suggesting traders to sell. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum looks bearish. Hence, the price may go down further. Since the MACD lines are near zero range, we can not rule out the possibility of the trend reversal.
Currently, the RSI indicator is at 36.90%. It faced rejection at 50.97% and fell back to this level. Thus, selling pressures are slowly mounting. We have to wait and watch if buying pressures become strong enough to bring about a bearish trend reversal.
On the daily chart, the OBV indicator is trading constantly. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the MATIC price.
In short, when we look at all three oscillators, we can say that the price may continue to fall. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch if an intermittent price rise is a corrective action or the beginning of a positive trend.
Currently, the MATIC price is below the second Fibonacci pivot point of $1.51. If the bears remain strong till day end, then the price is likely to fall below the first, and second, support levels of $1.35, and $1.26, respectively.
The price is trading below the 38.2% FIB retracement level of $1.68. It may soon fall below the FIB retracement level of $1.42. Thereafter, we have to wait and watch if the price retests and breaks out of these levels. In that case, the price upswing is likely to continue tomorrow as well.
However, on the upside, if the resistance of level $1.52 is broken, it will highlight the next resistance at $1.68, which can be kept as the target for the long call.