Polygon’s Price Analysis: Navigating Complex Patterns
Polygon’s price is currently navigating through a series of patterns, and despite a recent bullish trend, there are complexities that investors should be aware of.
Recent Market Trends
MATIC’s price experienced a slight decline of more than 2% in the last 24 hours. Although selling pressure remained low, other metrics painted a bearish picture.
Shift in Daily Chart
After a comfortable rise last week, Polygon’s [MATIC] daily chart has turned bearish. Despite this shift, investors need not panic, as MATIC is currently exiting a bullish pattern on its price chart.
Evaluating Potential for 2023 High
In light of these developments, AMBCrypto conducted a thorough analysis of MATIC’s metrics to determine whether the token could reach its 2023 high in the coming weeks.
Polygon Exits from Bullish Pattern
Investors enjoyed profits last week as Polygon’s value surged by more than 4%. However, the scenario changed in the last 24 hours, witnessing a 2% price decline, as reported by CoinMarketCap. At press time, it was trading at $0.9802 with a market capitalization exceeding $9.4 billion.
World of Charts, a popular X (formerly Twitter) source, highlighted that MATIC was exiting from a bullish triangle pattern. AMBCrypto further investigated MATIC’s liquidation heatmap to identify potential resistance zones in the short term.
The possibility of MATIC encountering strong resistance near $1.11 appeared high, as liquidation levels might sharply increase at that point, potentially exerting selling pressure and causing a price decline.
Assessing the Possibility of a Rally
To gauge the potential for a bull rally, AMBCrypto delved into various metrics. CryptoQuant’s data revealed a decrease in MATIC’s exchange reserve, signaling low selling pressure. However, other metrics raised concerns.
- The MVRV ratio of the token dipped over the last week.
- Supply held by top addresses remained flat, indicating no significant accumulation by whales.
- MATIC’s network activity experienced a marginal decline, reflected in the decrease in daily active addresses.
Technical indicators such as MACD displayed the possibility of a bearish crossover. Although Polygon’s price touched the upper limit of the Bollinger Bands, causing a slight drop, the Money Flow Index (MFI) remained well above the neutral mark.
Despite the challenges, MATIC’s price was still above its 20-day simple moving average (SMA) at the time of writing, suggesting it could act as a key support and potentially help MATIC rebound.
