Polygon (MATIC) has been hitting highs and slipping over the past month. Analysts are eyeing a retracement to $0.58 if the coin breaks below $0.77.
Polygon, self-proclaimed “the blockchain internet of Ethereum”, looks poised for a major shift after its market value skyrocketed as seen over the past few weeks. On the other hand, there is still a strong support zone that can anchor the coin to maintain its price.
MATIC is currently set in anticipation of a correction but has yet to break the support line. It rallied and was up more than 200% after rebounding from a low of $0.32 and reaching a high of $0.98 as seen on July 18.
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Strong MATIC sell signal
The token appears to be basking in what is known as overbought ground. A sell signal was noticeable in the Tom DeMark (TD) sequential indicator on the MATIC daily chart. It shows nine green candlesticks or forming a bearish pattern that shows a correction. The weak outlook was supported by the two red candlesticks which appear to be trading below the other red candlestick.
Despite its passive movement, MATIC has Parabolic SAR, a strong support cluster, as well as the retracement seen at $0.77 and the 100-day moving average keeping everything stable. A daily candlestick sliding below the critical line could trigger downward pressure and result in a 22% correction to $0.58.
MATIC total market cap at $6.87 billion on the daily chart | Source: TradingView.com
MATIC to regain strength, heading towards $1.20
If MATIC can break above its July 18 high set at $0.98, it may shake up its weak outlook. Once it breaks through this critical resistance level, MATIC will regain strength to approach the $1.20 200-day moving average.
The token has garnered a lot of attention as it prepares to transition to a multi-chain platform and has skyrocketed over the past month. The entire crypto market has rallied over the past two weeks; and the MATIC price also recovered and increased accordingly.
Polygon is well on its way to rolling out faster and more affordable Ethereum transactions. The future looks bright for Polygon as it progresses towards becoming a multi-channel network, its implications with NFT, as well as its collaborations and projects with Stripe, Disney and Adidas.
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Featured image from VOI, chart from TradingView.com