MATIC price jumped 18% yesterday as investors rushed into altcoins. But crucial obstacles lie ahead. Can Polygon clear the resistance and aim for the ATH?
Polygon (MATIC) surged to its best day in three weeks yesterday, gaining $0.21 to $1.3724. As a result, the layer-2 scaling solution has cleared several key resistance levels. However, some still lie ahead. And considering the magnitude of the recent turnaround, MATIC may soon be testing them.
But even more impressive is the rise in adoption. At this morning’s $1.4827 high, the MATIC price had increased by more than 135% from July’s low and lifting Polygon’s market cap by more than $4 billion to $8.8b. Furthermore, Total Value Locked (TVL) assets for Polygon is now nudging $10 billion and is on course to surpass the $11.85 peak in May. This is certainly encouraging and testament to the growing belief that Polygon is a bonafide player in the cryptocurrency space.
Although, this morning, the market as a whole is cooling down from yesterday’s power surge, and the MATIC price has drifted around 8% lower from today’s high. Nonetheless, the technicals suggest the rally may soon resume.
Polygon Technical Levels
Several supporting factors are clear on the daily chart. First and foremost, the MATIC price has continued to advance beyond the 50-day moving average at $1.0375. Not to mention that yesterday, Polygon successfully cleared the 100 DMA at $.12513. This now becomes the first level of technical support.
Secondly, the recent price action has created a rising trend line at $1.0930, which lends to the support of the 50 DMA.
Additional upside targets include the mid-June high at $1.7580, followed by the 26th of May peak at $2.4830. And should they surrender, the all-time high at $2.8988 becomes an achievable target.
However, the velocity of yesterday’s extension has lifted the Relative Strength Index (RSI) to an overbought reading of 70.47. Therefore, we are likely to see some consolidation ahead of the next leg higher.
The outlook for the MATIC price is certainly bullish. Although should Polygon fall below the support of the 50 DMA, it would suggest the price may move lower first.
MATIC Price Chart (Daily)
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