Polygon (MATIC) seems to be experiencing a steady uptrend in recent weeks after retesting its 100-day lowest level of $0.72. It has attracted attention lately by breaking through the $0.9 resistance zone. Another reason for the increased focus is the bulls’ attempt to retake the $1 level, which has been a key technical and psychological area historically. However, this time things might be different.
Current Status of Polygon (MATIC)
The range expanded between the $0.72 (purple) level and the $0.927 level, with the mid-level at the $0.821 region. On the daily chart, the area that seemed to prevent a decline was marked with a turquoise color at the $0.9 level.
At the end of December 2023, this level was surpassed, and the highest levels of the range now seem to have turned from resistance to support. However, due to a general downturn in the market on January 3, the MATIC price also turned downward along with a large part of the crypto market. Following the decline, a large fair value gap indicated by a white box was left behind.
On January 11, MATIC rose to this fair value area, but the bulls failed once again to ensure permanence. In the second half of January, indicators pointed to a downward trend, but the last three weeks have shown a strong stance despite everything, and the mentioned levels were being maintained.
This time, however, the OBV value managed to rise above the key resistance that had been pressuring buyers since January. With this rise, the possibility of an ascent to the region beyond $1.19 also became plausible.
Comments on Polygon (MATIC)
During this period, the MVRV ratio of MATIC showed a significant increase due to price rises, indicating an upward trend and revealing the scale of investors in profit to market followers. On the other hand, the amount of MATIC held by exchanges also increased over the past three weeks.
While all these developments were taking place, there was also talk that the selling pressure associated with profit-taking could emerge due to the price increase and could trigger a decline in the MATIC price.
While these price movements were happening, the rapid increase in price might have created a sense of having missed out for investors looking to take a position. Nevertheless, some believe that if the $0.9 to $1 region is retested, it could provide another entry opportunity.
As of the time of writing, the MATIC price was at $0.9905, indicating a 1% retreat in price.
