- High liquidity at $0.73 may prevent further price growth.
- The next target for the token could be $0.85 if the bulls can overcome this hurdle.
Polygon (MATIC) may have shown signs of seller exhaustion, but a break above $0.73 is unlikely in the near future. This is exactly the signal AMBCrypto received after checking the liquidation heat map.
Heat map colors range from purple to yellow. The purple colors represent a small number of expected liquidations. Yellow color indicates high level of elimination.
According to data analyzed by Coinglass, there was a high level of liquidity at around $0.73. At this level, open positions worth $235,280 could disappear.
Will MATIC be able to leave?
But that wasn’t the only thing. The same zone can serve as resistance for the token. Thus, if MATIC strengthens, a close above $0.73 could be a tough nut to crack.
At the time of publication, Polygon’s native token changed hands at $0.68. This value was 25.56%. correction for the last seven days.
However, the market value to realized value (MVRV) ratio indicates a possible recovery for MATIC.
At the time of writing, the 30-day MVRV index is -18.37%. This value implies that most token holders would suffer a loss if they sold at the current price.
On the other side of the spectrum, the MVRV ratio indicated that MATIC was undervalued. Recently, when Polygon reaches this area, there is a rebound.
If buying pressure appears at this point, the price could rise above $0.70 in the short term.
As mentioned above, the token may face resistance at $0.73. However, if the bulls increase their dominance, resistance may be apparent and Polygon’s next target could be around $0.85.
Beyond the on-chain perspective, it is important to look at the pricing potential from a technical perspective. This is what AMBCrypto did.
According to the 4-hour chart, on April 13, MATIC tried to sell $0.75. But the token was returned. There was a similar attempt on the 15th, but the bears made sure that the token did not clear the way.
The price will fluctuate sideways
At press time, bulls had formed support at $0.67. As long as this protection is maintained, the value of the token cannot fall below the point.
Additionally, the relative strength index (RSI) declined, indicating bearish momentum. Given the trend shown, Polygon’s price may not reach $0.70 anytime soon.
However, if the RSI reaches oversold territory, the cryptocurrency could rise. For short-term price targets, the Fibonacci retracement indicated that MATIC could range from $0.62 to $0.67.
Read Polygon’s (MATIC) price forecast for 2024-2025.
Additionally, the Awesome Oscillator (AO) indicator showed green histogram bars, suggesting that the growing downward momentum could be wiped out.
If so, MATIC price could head towards $0.71, where the 0.236 Fibonacci level was located.
This is an automatic translation of our English version.