Even with encouraging reports of Polygon closing agreements and becoming one of the most token acquisitions of ETH whales, the future of its native token MATIC does not look very bright.
From September 13 onwards, it aligns with the rest of the cryptocurrency market. The September 7-12 rally was eventually rejected by the bears at the $0.9403 resistance area.
With the same 5-day timeframe since then, the value of the token has dropped by a staggering 20.65 percent. At the time of writing, the coin is hovering around the 78.60 Fibonacci retracement level, between $0.6898 and $0.7770.
Traders should watch both the Fibonacci level of 61.80 (now at $0.6989) and the support level of 0.7185. These two factors have reversed the downtrend, and the bullish momentum on the hourly chart presents some much-needed support.
Bullish momentum polygon hinting at demand
Also, bullish momentum appears to be building around the 1 hour time frame. The increase in the value of the Stoch RSI indicates that the demand for the cryptocurrency is increasing.
In addition, the momentum indicator shows that the trend is on the rise. However, a greater amount of momentum created here could have a huge impact on the broader picture.
This slight upward trend may be attributed to the expansion of development activities in the Polygon chain. This increase in development activity may indicate that the team is incorporating new features or correcting existing ones, according to a recent analysis.
This increases investor and trader confidence. With the cryptocurrency market recovering after the September 13th sell-off, the recently announced partnership between Polygon and Flipkart may accelerate MATIC acceptance and contribute to the expansion of the Polygon ecosystem.
MATIC PRICE: Potential buying pressure
In light of this, could recent developments in Polygon inspire confidence? In fact, I did exactly that. However, recent developments were not the main reason for the price increase.
With the price lower, indicators also indicated a strong buy signal. The bull bear indicator reveals the same information. With the bulls gaining momentum, the RSI will also rise, indicating a significant increase in buying pressure.
This may have an impact on the overall MATIC recovery. If the bulls can settle at the 71.80 Fibonacci level, another bullish rally could be envisaged to support the price’s bullish momentum.
The $0.7395 price range is the key resistance level on this chart. If the bulls gain speed and break through this resistance level, the MATIC symbol could be on the cusp of a recovery.
MATIC total market cap at $5.9 billion on the daily chart | Source: TradingView.com Featured image from Coincu News, Chart: TradingView.com