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The price of MATIC is showing signs of exhaustion but is rapidly approaching a stable support area that could be the key to making new highs. Metrics within the network, especially transaction data, add weight to the assumption of a new all-time high.
After rising 36% between February 24 and March 2, MATIC formed a range of $1.24 to $1.69. The swing high and low created during this uptrend serve as a local top and bottom.
The recent surge, which saw the price of MATIC rise 21% from $1.44, aimed to break the upper limit at $1.69. Due to the setback, the Polygon bears gained the upper hand, resulting in an 11% pullback.
The price of MATIC has a demand zone from $1.44 to $1.53 as a launch pad. As such, investors can expect a strong bounce when retesting the indicated support area, which would see Polygon push past the $1.69 high. A successful reversal of this level will pave the way for a retest of the $1.87 level.
Breaking this ceiling will provide Polygon with an unhindered path to an all-time high of $2.90, expanding to $3.
The IntoTheBlock Global In/Out of the Money (GIOM) model supports the uptrend thesis for Polygon. This index shows that the roughly 35,000 addresses that bought nearly $3.24 billion worth of MATIC tokens at an average price of $1.65 were out of the money.
Regardless of the optimism that technical analysis inspires in the price of MATIC, a sudden drop in Bitcoin will pull the altcoin market down as well.
A daily candle close below $1.44 will rob the bullish thesis of strength, and this event will be key in pushing Polygon down to a range low at $1.24.
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