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Polygon Price Analysis – MATIC Rebounds a Strong 28% After Yesterday’s Crash

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Key highlights:

MATIC price $0.84
Key MATIC resistance levels $0.95, $1.00, $1.05, $1.15, $1.20
Key MATIC support levels   $0.8, $0.728, $0.685, $0.619, $6

*Price at the time of publication

After being one of the worst performers in the top-50 yesterday, MATIC reversed today and surged by an impressive 28% to make it today’s strongest performer in the top-50. The cryptocurrency dropped lower yesterday during BTC’s drop beneath $30,000, which caused MATIC to spike beneath the 200-day MA and hit support at $0.619 (downside 1.414 Fib Extension). 

By the end of the day, MATIC found support at $0.685 and rebounded higher from there today to break above $0.833.

The team behind MATIC, Polygon, recently launched their own NFT gaming studio called Polygon Studios. The studio was created to bring more development to the network and provide support and infrastructure for blockchain game builders.

In other news, large-scale projects are continuing to adopt the layer-2 scaling solution provided by Polygon. For example, last week, Balancer Protocol announced that they launched their service on the Polygon network. This integration will help to reduce transaction fees for traders quite significantly. 

Recently, Coinbase also announced that they integrated support for the Polygon Network into their non-custodial Coinbase Wallet. This integration will allow users to use any dapp and protocols already on Polygon through the app, such as Aave. 

MATIC is now ranked in the 20th position as it currently holds a $4.12 billion market cap value.

Polygon (MATIC) price analysis

What has been going on?

Taking a look at the daily chart above, we can clearly see that MATIC has been in an extended downtrend since mid-May after it hit a high-day closing price of around $2.44. Since then, it dropped through June until support was found at about $1.05 toward the end of the month.

Unfortunately, the support at $1.05 could not hold in July and the market tanked further from there. It broke beneath $1.00 and initially found support at $0.8. However, on Monday, MATIC broke $0.8 to hit support at $0.728 (.786 Fib Retracement). It continued lower yesterday as BTC dipped beneath $30K, dragging MATIC as low as $0.619, where it found support at a downside 1.414 Fib Extension.

Luckily, the bulls regrouped by the end of the day and allowed the daily candle to close at $0.685. The bulls rebounded higher from there today to break above $0.8. If today’s candle can close beyond $0.8, it would be breaking above a long-term falling trend line that has prevented the market from making a higher high since mid-May.

MATIC price short-term prediction: Neutral

MATIC is considered neutral right now, but a drop beneath $0.685 would turn the market bearish in the short term. To start to turn bullish, MATIC would need to rise beyond the July highs at around $1.20 and break above the 50-day MA.

Looking ahead, if the sellers push lower, the first level of support lies at $0.8. This is followed by support at $0.728 (.786 Fib Retracement), $0.685 (May support), and $0.65 (200-day MA). Beneath the 200-day MA, additional support lies at $0.619 (Downside 1.414 Fib Extension), $0.6, and $0.51 (.886 Fib Retracement).

Where is the resistance toward the upside?

On the other side, the first level of strong resistance lies at $0.94 (20-day MA). This is followed by resistance at $1.00, $1.05 (bearish .236 Fib Retracement), and $1.15 (100-day MA).

If the buyers can penetrate the 100-day MA, the first resistance lies at $1.20 (50-day MA), $1.31 (bearish .382 Fib Retracement), and $1.50 (bearish .5 Fib Retracement).

MATIC/BTC price analysis

What has been going on?

The situation is fairly similar for MATIC against BTC. It has constantly been declining since mid-May to find support at around 3160 SAT during June. Unfortunately, this support broke during July as MATIC collapsed beneath 3000 SAT until reaching the support at 2300 SAT yesterday, provided by a .786 Fib Retracement level.

MATIC has since rebounded higher from the support today and is now trading around 2635 SAT.

MATIC/BTC short-term prediction: Neutral

MATIC is neutral right now and would have to continue further higher above 3500 SAT (50-day MA) to turn bullish again. On the other side, a drop beneath 1600 SAT (200-day MA) would put MATIC in danger of turning bearish in the short term.

Looking ahead, if the sellers push lower, the first level of support lies at 2500 SAT. This is followed by support at 2300 SAT (.786 Fib Retracement), 2000 SAT, 1820 SAT (.886 Fib Retracement), and 1600 SAT (200-day MA & downside 1.414 Fib Extension).

Beneath the 200-day MA, added support lies at 1500 SAT, 1345 SAT (Downside 1.618 Fib Extension), and 1255 SAT.

Where is the resistance toward the upside?

On the other side, the first resistance lies at the falling trend line. This is followed by 3000 SAT (100-day MA). Above 3000 SAT, resistance lies at 3161 SAT (bearish .236 Fib Retracement), 3500 SAT (50-day MA), 3825 SAT (bearish .382 Fib Retracement), 4000 SAT, and 4360 SAT (Bearish .5 Fib Retracement).

   

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