Even with encouraging reports of Polygon striking deals and becoming one of the most acquired tokens by ETH whales, the future of its native token, MATIC, does not look very bright.
From September 13, it aligned with the rest of the cryptocurrency market. The September 7-12 bull was eventually turned down by the bears at the $0.9403 resistance zone.
With the same 5-day time frame since then, the value of the token has dropped by 20.65%. At the time of writing, the price of the token was hovering around the 78.60 Fibonacci retracement level, ranging from $0.6898 to $0.7770.
Traders should keep an eye on the 61.80 Fib level (now at $0.6989) and the 0.7185 support level. Both of these factors thwarted the downtrend and, given the upward momentum of the hourly marks, much needed support.
Polygon Bullish Momentum Gives Demand Clues
Also, bullish momentum seems to be building around the 1-hour time frame. Increases in the Stoch RSI value indicate that the demand for the cryptocurrency is increasing.
Moreover, the momentum indicator shows that the trend is up. A greater amount of momentum produced here, however, can have a major impact on the larger picture.
This slight upward trend can be attributed to the expansion of development activities in the Polygon chain. This increase in development activity may indicate that the team is integrating new features or fixing existing ones, according to recent analysis.
This further boosts the confidence of investors and traders. However, as the crypto market recovers from the September 13 sell-off, the recently announced partnership between Polygon and Flipkart could accelerate acceptance of MATIC and help expand the Polygon ecosystem.
MATIC Price: Potential Buying Pressure
In light of this, could Polygon’s recent advancements inspire confidence? Indeed, he accomplished just that. However, recent advancements have not been the main cause of the price increase.
As the price moved lower, the indications also indicated a strong buy signal. The bullish-bear indicator reveals the same information. As the bulls gain momentum, the Stoch RSI will also rise, indicating a significant increase in buying pressure.
This may have an effect on the total recovery of MATIC. If the bulls are able to stabilize at the 71.80 Fibonacci level, another bullish run may be conceivable to sustain the bullish momentum in the price.
The $0.7395 price range represents the main resistance level on this chart. If the bulls accelerate and break through this resistance level, the MATIC token could be on the verge of a rally.
MATIC total market cap at $5.9 billion on the daily chart | Source: TradingView.com Featured image from Coincu News, Chart: TradingView.com