Can Polygon (MATIC) overcome the 26% decline and return to the $1 level?
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- MATIC is up almost 6% in the last 24 hours.
- Market metrics and indicators looked bearish.
Polygon (MATIC) has witnessed numerous price corrections over the past month as it continues to fall into the list of top 20 cryptocurrencies.
However, the last 24 hours have looked promising as the token’s daily chart has turned green. Will this lead to a full recovery for MATIC?
Polygon has problems
CoinMarketCap’s data He reported that the price of MATIC has fallen by more than 26% in the last 30 days. The massive price drop pushed MATIC to 18th place on the list of the top 20 cryptocurrencies.
World of Charts, a popular cryptanalyst, recently published cheap highlighting Polygon’s behavior. According to the tweet, MATIC was still consolidating in the downward channel.
For MATIC to recover from its losses, it will be critical for it to break through the $0.77 resistance level. A break above this level could lead to a massive bullish rally.
Over the past 24 hours, things have looked bright for MATIC, with its token price up 6%. At the time of writing, it was trading at $0.7419 with a market capitalization of over $7.3 billion.
Thanks to the recent price surge, the token’s MVRV ratio has improved. This meant that more investors profited.
However, despite this, selling pressure on Polygon was high as foreign currency inflows increased. Moreover, its supply on exchanges has increased, while its supply outside exchanges has decreased.
This further demonstrated the fact that investors were selling MATIC, which could cause problems for the token’s bullish rally.
Polygonal path ahead
With indicators suggesting a price correction, AMBCrypto looked at the daily chart of MATIC to better understand whether MATIC could rise above $0.77 in the near future.
We found that, like the metrics, most Polygon indicators also remained bearish. Bollinger Bands signaled that the MATIC price was in a less volatile zone.
In addition, the MATIC Money Flow (MFI) and Chaikin Money Flow (CMF) indices recorded declines. This indicated that the token’s bullish rally may soon end.
However, the MACD supported buyers by showing a bullish crossover.
Given a utopian scenario in which MATIC maintains its aggressiveness, it will still have to overcome a hurdle.
Read Polygon (MATIC) Price Forecast 2024-25
AMBCrypto’s analysis of Hyblock Capital data showed that MATIC liquidation will increase sharply and approach the $0.76 mark. Whenever liquidation increases, the chances of a price correction increase.
Therefore, MATIC could successfully break above this level before targeting the $0.77 resistance.
This is an automatic translation of our English version.