In the past month, Polygon (MATIC) has experienced several price corrections, causing it to gradually descend in the rankings among the top 20 cryptocurrencies. However, there was a glimmer of hope in the last 24 hours as the token's daily chart showed positive movement. Could this signal a potential full recovery for MATIC?
MATIC Analysis: Road to Recovery and Market Trends
According to CoinMarketCap's data, MATIC's price has plunged by over 26% in the past 30 days, leading to a significant decline in its ranking to the 18th position among the top 20 cryptocurrencies.
Source: CoinMarketCap on TradingView
World of Charts, a renowned crypto analyst, recently shared insights on Polygon's behavior, highlighting that MATIC is still consolidating within a descending channel.
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For MATIC to stage a recovery from its losses, surpassing the $0.77 resistance level is crucial. A breakout above this level could potentially trigger a substantial bullish rally.
Recent developments in the last 24 hours have been optimistic for MATIC, with its token's price registering a 6% increase. At the time of writing, it was trading at $0.7419 with a market capitalization exceeding $7.3 billion.
Source: Santiment
Thanks to the recent price uptick, the token's MVRV ratio has seen improvement, indicating that more investors are now in profit.
Read more: XRP's $4 Dream—Analysts Hopeful Amid SEC Tension
Despite this positive trend, MATIC has faced significant selling pressure as reflected in the increase in exchange inflow. Additionally, while the supply on exchanges has risen, the supply outside of exchanges has dropped.
These indicators suggest that investors are actively selling MATIC, which could potentially hinder the token's bullish rally.
Is MATIC Ready to Break $0.77 Resistance? Here's What the Analysis Says
In the analysis conducted by AMBCrypto to ascertain whether MATIC could break above the $0.77 resistance level soon, it was found that, in line with metrics, most indicators remained bearish on Polygon. The Bollinger Bands indicated that MATIC's price was situated in a less volatile zone.
Source: AMBCrypto on TradingView
Furthermore, downticks were observed in both MATIC's Money Flow Index (MFI) and Chaikin Money Flow (CMF), suggesting that the token's bullish momentum might be nearing its conclusion.
Despite these bearish signals, support for buyers was provided by the MACD indicator, as a bullish crossover was displayed.
Read more: Justin Sun Questions Likelihood of Ethereum ETF Approval in May
Potential Roadblocks for MATIC's Bullish Rally
In a utopian scenario where MATIC sustains its bullish rally, it may still encounter an obstacle. AMBCrypto's analysis of Hyblock Capital's data revealed that MATIC's liquidation would experience a sharp increase near the $0.76 mark. When liquidation rises, it raises the likelihood of a price correction.
Source: Hyblock Capital
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Consequently, MATIC might need to surpass that level before targeting the $0.77 resistance. If MATIC successfully overcomes this obstacle and continues its upward trajectory, it could potentially pave the way for further appreciation in its price.
See more: Cryptocurrency Prices and Market Cap
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