- Polygon price analysis highlights MATIC’s price stagnation.
- Polygon locked between the 50 four-hour MA and the 100 four-hour MA.
- A spike in buying pressure could see Polygon turn bullish.
Polygon price action has witnessed an interesting leg in 2021. From appreciating by over 15,000 percent year-to-date to hitting a new all-time high at $2.7, the young crypto has given veteran cryptos a run for their monies.
Polygon Price Analysis: General price overview
At the time of writing, Polygon is down by about 35 percent from its record high due to the May 19 crypto market crash. Despite the crash, Polygon has managed to rise from the ashes to register a 145 percent growth from its crash lows. Due to this recovery, the crypto coin is currently facing indecision among a section of its investors.
According to analysis, the ongoing indecision being experienced in Polygon’s price action is due to overhead and selling pressure from the prolonged bull run. Polygon’s bull run has been active since the start of the year. Also, the general volatility being experienced in the market could be a contributing factor for the ambivalence.
Polygon price movement in the past 24 hours
According to Polygon’s 24-hour price chart, the crypto asset seems to be stuck between a tight extension. Currently, MATIC is exchanging hands between the 50 4-hour Moving Average and the 100 4-hour Moving Average. As a result, MATIC price movement appears to be moving sideways. It is worth noting that the 50 4-hour MA is currently acting as a temporary upper trend line and the 100 4-hour MA as a strong support line.
Although Polygon is fortunate to have a robust support line at the 100 4-hour Moving Average, the crypto asset has equally strong resistance barriers ahead. For Polygon to attract another rally, the crypto asset has to break above these obstacles. Additionally, Polyon’s IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model highlights that 2 significant groups of investors are Out of the Money.
According to the IOMAP model, over 4,600 addresses purchased more than 150 million Polygon tokens at an average price of about $1.85. Out of the Money, the other group of 5,600 investors bought more than $130 million MATIC coins at an average price of about $1.88. The IOMAP data confirms Polygon’s ongoing indecisiveness within the 50 and 100 4-hour moving averages.
Polygon 4-hour chart
According to MATIC’s 4-hour chart, the next area of interest for the crypto coin is the 61.8 percent Fibo extension level that currently stands at around $2. Should MATIC surge above the 50 4-hour MA, the crypto is likely to hit this price region. The IOMAP technical indicator shows Polygon has less opposition past $1.9, until $2.0.
As it may, market participants should also be keen on the Bollinger bands squeeze witnessed in the recent price movement. Usually, such Bollinger band movements are characterized by periods of low volatility that are succeeded by high volatility. While the Bollinger band technical analysis might not give a clear timeframe of when Polygon’s price volatility will increase, a surge in buying pressure could see the crypto retest its ATH.
Polygon is a growing crypto sensation famous among Ethereum blockchain platform users. It is a Layer 2 scaling and infrastructure development solution that provides solutions to critical industrial issues relating to Ethereum. Such issues include high transaction fees, network congestion, and slow speeds. As a result, Polygon is quickly gaining popularity among whales and institutions.
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