The Polygon Price is snaking sideways, hemmed between two opposing trend lines and glued to the long term moving averages. Despite Bitcoin’s (BTC) ascent to a four-month high of $55k, Polygon (MATIC) has lost close to 30% over the last four weeks. Furthermore, the MATIC token is less than half the price of the record set in May. As a result, the price action gives few clues about whether a sustained recovery is on the cards.
Like much of the market, Polygon staged a strong recovery from the July lows, surging 200% to $1.870 by the first week of September. However, the Evergrande group default and China’s enhanced crypto ban wiped 45% off the price by the end of the month. Since then, the MATIC price has been trending broadly higher and yesterday climbed to a three-week high of $1.43. However, Polygon reversed 12% from the intraday high and is currently changing hands at $1.260.
MATIC Price Forecast
The daily chart highlights the neutral outlook. MATIC is sitting mid-price between trend support at $0.920 and trend resistance at $1.550. Furthermore, it continues to hug the 100-day moving average at $1.210. However, the 200-day moving average at $1.105 reinforces the trend support. Above the market, the 50-day moving average is the first resistance level, followed by the descending trendline.
Until the Polygon price breaks above trend resistance or falls below trend support, the outlook is unclear. The longer-term uptrend is dominant and supported by the 200 DMA, which is encouraging. However, considering Bitcoin’s strength, MATIC has performed poorly of late. In simple terms, a clearance of $1.550 is bullish, and a breach of $0.920 is bearish. Until either event happens, I maintain a neutral stance.
Polygon Price Chart (Daily)
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