We use cookies to offer a better browsing experience, analyze site traffic, personalize content, and serve targeted advertisements. By clicking accept, you consent to our privacy policy & use of cookies. (Privacy Policy)

MATIC price prediction: Flat price and low volume stifle Polygon

Crypto currency background with various of shiny silver and golden physical cryptocurrencies symbol coins, Bitcoin, Ethereum, Litecoin, zcash, ripple.

The MATIC price has a clear direction, sideways! Polygone is struggling for inspiration amid the lowest volumes in two years. Something has to give soon.

MATIC is marginally higher, up +1.15% to $1.0506.

The Polygone price has spent the last 2 weeks nestled against the 100-day moving average at $10.734. Although yesterday was the first time since February that MATIC has finished the day beneath the important gauge of sentiment.

Normally, this would encourage selling, with two possible outcomes. Either the decline encourages systematic sell programmes, and the price cascades lower as more stops are triggered. Or bulls use the weakness to accumulate, sending the price higher and forcing newly minted shorts to cover.

However, it seems there is option #3: The price does nothing.

This sums up the Polygon price action of late. Not since 2019 has MATIC seen such a lack of interest. The trading volume this month is around 10% of the 200-day average. This highlights just how confused the market is.

Is Poly gone?

Certainly, unless the price recovers the 100 DMA, it looks in trouble. Furthermore, a close below the psychological $1.000 barrier would be a first since the May $2.8989 high.

The danger still lies in a move towards the early May low of $0.6700. However, this area should provide a solid support level that is bolstered by the 200-day average at $0.6000.

On a positive note, a close above the recent $1.1800 high would suggest the MATIC price has averted the immediate peril. On that basis, Polygon would be faced with the downward sloping 50 DMA at $1.4080.

In my opinion, only a clearance of this target would indicate that MATIC has reversed its negative trajectory. For now, the risk remains skewed to the downside.

MATIC price chart (Daily)

MATIC price prediction

Follow Elliott on Twitter.