Polygon Price: A Strong Recovery Contender
Polygon price is showing signs of being a strong contender for recovery after the recent volatility in the crypto market. Although the weekend sell-off caused a temporary halt in the rally, it also led to an 18% drop in MATIC’s value, bringing it down from $1.28 to its current value of $1.06. However, there is some good news as prices seem to have stabilized, creating an opportunity for traders to buy the dip and potentially generate momentum for the next upswing. This puts MATIC’s price at a critical juncture, with key support levels presenting a pivotal moment for Polygon’s investors.
Will $1 Support Prevent a Slide to Lower Levels?
Over the past two months, Polygon has experienced a steady recovery trend supported by a rising trendline. This dynamic support has resulted in an 86% increase in the altcoin’s value, with prices rebounding from $0.69 to a yearly high of $1.29.
However, amidst the current correction trend in the market, MATIC’s price has dropped to $1.05, hovering above the aforementioned trendline and 38.2% Fibonacci retracement level. Crypto trader @ali_charts points out that the range from $1.02 to $1.05 is a crucial support zone, backed by 10,900 addresses holding 608 million MATIC tokens.
This data indicates significant collective confidence in Polygon’s value within this price range, which could potentially stabilize market price dips.
#Polygon has found crucial support between $1.02 and $1.05, supported by 10,900 addresses holding around 608 million #MATIC. Should this support falter, the next essential demand zone lies near $0.91, where 35,700 addresses collectively hold 394.6 million $MATIC. pic.twitter.com/rLn4ymcQf7
— Ali (@ali_charts) March 16, 2024
The current positioning of Polygon Price suggests a strong possibility for a bullish reversal that could energize buyers and potentially lead to a 25% increase. This surge would aim to test and possibly surpass the upper resistance of the triangle pattern formation, which has been guiding a sideways trend for the past two years. A breakout from this pattern would signal a major shift in MATIC’s trend.
How Will Polygon Price Navigate If $1 Support Breaks?
If the current market correction continues, there is a possibility that MATIC’s price may break below the support trendline at $1.02. In such a scenario, a secondary demand zone at $0.91 could come into play, with 35,700 addresses collectively holding 394.6 million MATIC tokens. This indicates strong holder confidence at these levels.
In a more pessimistic scenario, sellers may push the correction further down to the triangle’s lower support trendline at $0.6.
- BB Indicator: An upswing in the lower boundary of the Bollinger Band indicator serves as an additional support level to maintain this recovery trend.
- Moving Average Convergence Divergence (MACD): A bearish crossover between MACD and the signal line suggests no sign of reversal at the moment. Risk-averse traders may prefer to wait for a bullish candle formation before entering the market.
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