Polygon Price Analysis: Despite surviving the May crash, MATIC scheduled to face short term challenges

TL;DR Breakdown

• Polygon price analysis highlights the coin’s resistance despite the market-wide crash.
• Polygon no longer forming a cup-with-handle base.
• IOMAP shows MATIC is likely to face considerable resistance close to its current price value.
• Daily volume continues to dwindle, showing a lack of enthusiasm from buyers.

Despite the market-wide crypto crash that stirred fears among market participants, Polygon appreciated by 120 percent in May. On the other hand, Bitcoin depreciated by about 40 percent. Apart from the number one cryptocurrency, altcoins that registered significant losses include Polkadot, Ripple, Ethereum, Cardano, and many more. Generally, the crypto market lost about 24 percent of its valuation during May’s leg.

Polygon Price Analysis: General price overview

During the May crash, Polygon’s price activity was a positive highlight despite shedding 75 percent of its value. Polygon recorded an impressive price rebound of about 230 percent from its May 23 correction low. This saw the crypto coin extend its negative correlation with the king crypto, Bitcoin. For a season, MATIC was going forward with creating a cup-with-handle base, a thing that has since disappeared.  

Like most significant cryptocurrencies, Polygon registered a 230 percent price rebound from the recent market crash., rapidly forming a technical base for a cup-with-handle foundation. The base formation was dependable with accomplishment. The handle principally establishing the upper half of the base was flashing on increasingly lighter volumes while the right side of the cup signaled above-average volume. The lighter volume represented by the handle shows that weak MATIC holders had been edged out from the crypto asset, raising the stakes of a sustainable price rally.

Polygon price movement in the past 24 hours

According to the 24-hour price chart, Polygon is currently trading below the 50 12-hour Moving Average at around $1.72. Going by today’s price movement, it seems Polygon is at risk of a pullback that could see the crypto coin move towards the May rebound price level of 61.8 percent Fibo retracement level. This level coincides with the $1.17 price level.

As expected, if the crypto market continues with its volatility, MATIC could break down past the 78.6 percent Fibo retracement level at around $0.95. If worst comes to worst, the crypto could move past the 2021 rising trend line currently standing at about $0.98.

On the other hand, Polygon price movement could overcome the barriers mentioned earlier and register a double bottom on the intraday price chart. This will see MATIC surge towards the $1.98 price level, triggering a rally similar to May 26 that saw the crypto skyrocket to hit its ATH at $2.71.

Polygon 4-hour chart

Regarding on-chain metrics, the IOMAP model shows Polygon price faces a strong Out of the Money resistance between $1.60 and $1.80. Here over 13,000 addresses hold more than 209 million Polygon tokens. On the other hand, In the Money, support between $1.44 to $1.48 does not appear to be giving sufficient support. Here, more than 217 whales hold more than 63 million Polygon tokens. Although it could offer temporary support, this price range has already been breached today.

In summary, the IOMAP metric shows MATIC holders are best served in the near term. Short-term investors are likely to get profits from their holdings if they practice some level of patience to allow the immediate resistance levels to be bypassed.

Conclusion

In the last 2 months, Polygon has experienced exponential growth in user activity due to its low transaction fees and efficient transaction capabilities. Due to such powers, Polygon is poised to emerge as one of the most competitive crypto assets in the market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/polygon-price-analysis-2021-06-08/