Polygon Price Analysis: MATIC Consolidates Near $0.88; Hold Or Exit?

Polygon 2

Published 52 mins ago

Polygon price analysis portrays consolidation at a higher level. The bulls failed to capitalize on the previous session’s gains as the price retreated below the crucial $0.95 mark. The formation of a ‘hammer’ candlestick on the hourly chart frame indicates the buying from the lower levels.

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But the overall sentiment remained bearish. As of press time, MATIC/USD is reading at $$0.88, down 5.88% for the day. Further, the 24-hour trading volume gained 8% to $425,260,970 as per CoinMarketCap data. A jump in volume with a decline in price is a bearish sign.

  • Polygon price erases all the previous gains and trades with a bearish bias.
  • If the price drops below $0.88 it would bring more downside to MATIC.
  • Short-term support was placed near the $0.86 level.

Polygon extends consolidation

matic
Source: Trading view

On the daily chart, the Polygon price traded in a range-bound manner from May 11 to July 17 while holding below $0.714. On July 18, the price gave a breakout above that range and gave a bullish momentum of up to $0.976.

The price trades along the bullish trend line from the lows of $0.41 since June 30. After making a swing high of $0.98, the price started to consolidate forming a symmetrical formation. Further, MATIC formed a “Double Top” pattern. According to this formation, if the price closes below $0.88, then we can expect a good fall of up to $0.79. 

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In addition to that, the trading volumes are trading below average for the past 3 weeks, as shown in charts, along with price trading in a range or slightly uptrend. 

Polygon price is taking good support near the 20-day exponential moving average. That support is the only thing, that holds MATIC to don’t fall sharply in near future.

The RSI (14) is declining, indicating a probable downside momentum in the asset.

matic1
Source: Trading view

On the one-hour chart, the price fell shortly from the short-term consolidation that extends from $0.92 to $0.88. In today’s session, the price broke below the range for a brief period of time and is attempting to bounce back.

Also read: https://coingape.com/eth-whale-adds-312-billion-shiba-inu-tokens-amid-price-dip/

The momentum oscillator, RSI traded near the oversold territory, pointing to a sharp pullback in the price. Closing above $0.89 on an hourly basis could result in testing $0.90.

On the other hand, any downtick in the RSI would amplify the selling toward $0.85.

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Conclusion:

Polygon price analysis suggests an extended consolidation in a range of $0.88-$0.90. The technical indicators suggest waiting for the construction levels before placing aggressive bids.

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Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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