- Polygon is down more than 18% in the last 30 days.
- Although selling pressure was high, market indicators appeared optimistic.
Through the months, Polygoon [MATIC] has lost a significant portion of its market capitalization. MATIC now ranks 20th in terms of the top cryptos by market capitalization. However, the whole situation could change quickly as the token may have reached a market bottom.
Polygon turns bullish
CoinMarketCaps facts revealed that the token’s price had fallen by more than 18% in the past 30 days. However, the past few days have been in favor of investors as MATIC’s stock rose by more than 2% in the past 24 hours.
At the time of writing, MATIC was trading at $0.5652 with a market cap of over $5.5 billion. The better news was that this rebound could be the start of a bull rally.
ZAYK Charts, a popular crypto analyst, recently posted a tweet to draw attention to an interesting development. According to the tweet, MATIC tested support from a bullish falling wedge pattern.
Since the daily chart was green, the chances of a successful break above the pattern seemed likely.
If that happens, investors could soon witness a 70% to 80% increase in Polygon in the coming days or weeks. In fact, a bullish divergence was also seen on the Relative Strength Index (RSI) chart, further supporting the possibility of a massive bull rally soon.
Source:
Is there a bull rally around the corner?
AMBCrypto then planned to look at Polygon’s on-chain data to find out if a bull rally was possible. We found that the token’s MVRV ratio improved significantly over the past week, which can be interpreted as a bullish signal.
However, after a decline, MATIC’s supply on the stock exchanges increased, causing high selling pressure.
Whales’ confidence in MATIC also appeared to have waned as the supply of prime addresses fell. This meant that the top players in the crypto space were expecting a price correction.
Source: Santiment
Our analysis of MATIC’s daily chart showed that the Chaikin Money Flow (CMF) registered an increase. The Relative Strength Index (RSI) also followed a similar upward trend.
Furthermore, the MACD showed a bullish crossover. All these indicators suggested that the chances of a price increase were high.
Source: TradingView
Is your portfolio green? look at the MATIC profit calculator
If Polygon manages to remain bullish, it is crucial that it crosses the $0.57 mark as liquidation would rise. Generally, an increase in liquidation results in a price correction.
A breakout above that would open up ways for the token to reach $0.6. However, if the bears intervene, MATIC could fall to $0.54.
Source: Hyblock Capital
