- Polygon price analysis highlights MATIC’s break away from the prevailing falling wedge pattern.
- Polygon is striving for a higher high on its 24-hour chart.
- A 50 4-hour Moving Average offers support to MATIC after a sudden spike in selling pressure.
- Over the past month, Polygon whales have declined significantly.
Polygon continues to register lower highs as part of its consolidation phase, which has lasted since May 26. At present, the crypto coin is attempting to break out from the declining wedge pattern. However, MATIC appears to be struggling to maintain the upward price movement as whales have resulted in selling their holdings.
Polygon Price Analysis: General price overview
Since the start of trading today, Polygon has been registering gradual upward price movements. Despite this, the crypto coin appears to be trapped in a tight range while being in a consolidation leg in a diminishing wedge pattern since late May. As a result of these developments, the crypto asset recently tried to retest its ATH but failed to gather enough bullish momentum. This saw the Ethereum scaling solution registering lower highs and lower lows.
At present, on its price chart, Polygon is fighting to sustain its upward price movement that aims to breach the upper boundary of the decreasing falling wedge. Interestingly, the upper boundary of the decreasing falling wedge coincides with the 50 4-hour Moving Average, which acts as Polygon’s first line of defense.
If Polygon manages to break out above this upper boundary, it would confirm the crypto coin’s interest is accelerating. However, it appears critical indicators are speaking a different language. For instance, the Momentum Reversal Indicator (MRI) recently flashed a sell signal, which is expected to determine the local top. Due to the sell signal indicator, Polygon could be subjected to a rapid reversal of fortunes.
Polygon price movement in the past 24 hours
Despite its general bullish outlook, Polygon’s upward price action appears threatened and limited. This is due to the numerous barriers awaiting the crypto coin ahead. For instance, the 38.2 percent Fibo extension level at around $1.5 is set to act as a critical resistance barrier for Polygon if the MRI information is anything to consider.
Additionally, the 100 4-hour Moving Average and the 200 4-hour Moving Average are also expected to offer stiff resistance ahead for the crypto coin. The resistance is expected to be at $1.6, a price region that has 2 technical indicators clashing. Furthermore, market participants should be on the lookout for the 100 4-hour Moving Average as it is currently submerging below the 200 4-hour Moving Average. As a result, this should be a point of concern among investors.
Should Polygon find itself losing the current $1.44 support level, which coincides with the 50 4-hour Moving Average, the crypto coin could plunge towards the 27.2 percent retracement level. The 27.2 percent retracement level coincides with the $1.27 price level. If this happens, Polygon will find itself within the demand zone that extends from $0.93 to $1.21.
Polygon 4-hour chart
The gradual decline in MATIC whales also presents a significant concern for the crypto coin, as Polygon addresses with 10,000 to 1,000,000 tokens have been gradually depreciating since mid-May. Despite this, retail investors holding less than 1,000 tokens continue to rise, meaning the crypto coin is still competitive in the long term.
Recently, IoTeX took to their media outlets to announce the addition of Polygon to its budding platform of cross-chain swappable tokens. As one of the fastest-growing blockchain platforms in this sphere, Polygon is expected to gain a lot from this partnership.
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