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MATIC Price Analysis: Polygon Rises 1.5% To Trade Above $1.90


coingape.com 01 November 2021 09:08, UTC
Reading time: ~2 m

MATIC price has risen 1.5% over the last 24 hours to trade at $1.934. Polygon must defend the 50-SMA support to overcome the current selling pressure. A rise above the downtrend line will confirm a bullish breakout.

MATIC price rallied approximately 29% on October 28 to hit a high of $2.241. This MATIC rally shattered the $1.71 resistance as the Polygon bulls announced their return to town.

However, the price was rejected by the $2.240 resistance level signaling the start of correction that saw MATIC drop to seek support at the $1.753 support level on October 31.

The bulls have managed flip the $1.644 to $1.753 support zone into support which could provide a base for the next uptrend.

MATIC Price Bulls Must Defend The 50-SMA Support

Polygon price finds dynamic support from the 50 four-hour simple moving average since the late trading sessions of Sunday. This has seen the asset rise approximately 1.53% to the current rice around $1.934.

A break out above the downtrend line around $1.940 could trigger an upward rally towards $2.40 and eventually tag the all-time high (ATH) around $2.70.

The upsloping moving averages and the position of the Relative Strength Index (RSI) above the midline is a suggestion that the bulls are currently in control of MATIC price.

MATIC/USD Four-Hour Chart

On the four-hour chart, Polygon has bounced off the 50-period Simple Moving Average (SMA) at $1.823 which is currently providing robust support.

Therefore, a slip below the 50-SMA will invalidate the aforementioned positive outlook, a move that will indicate that the recent break above $2.20 may have been a bull trap. Because a drop below this level could see MATIC price drop to the $1.644 and $1.753 zone.

However, if bulls push the price above the downtrend line, it will be a suggestion that the overhead pressure is reducing. If this happens, it will be the start of an uptrend as bulls target the ATH above $2.70.

At the time of writing, MATIC teeters around $1.934 on most crypto exchanges.

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