The Polygon price has closed lower in six out of the last seven days and is trading 25% below the September high. However, several significant support levels below the market should help the MATIC token regain bullish momentum.
Polygon (MATIC) has performed poorly in November, despite Bitcoin and Ethereum setting new records. MATIC has lost 10% in value this month, causing it to slide down the crypto league table. At the current valuation, Polygon’s market cap is $11.93 billion, ranking it the 21st-largest cryptocurrency, behind Algorand (ALGO).
The underperformance in November is strange considering the token finished October at its highest-ever closing level. But since then, the price has been trending lower, even as the combined value of the cryptocurrency market reached a record $3 trillion valuation. However, it’s not bad news for the bulls as the Polygon price is still in a long-term uptrend. Furthermore, the major moving averages sit at the bottom end of the trend channel, reinforcing its support.
MATIC Price Analysis
The daily chart shows that the MATIC token has been trending higher in a rising channel for five months. The trend-line at $.1270, forming the bottom edge of the channel, is the pre-eminent support. The 50, 100, and 200-DMA’s at $1.518, $1.445, and $1.333, respectively, add to the robust scale-down support.
If Polygon continues to move lower, it should encounter buying, considering the confluent support below the market. On that basis, I maintain an overall bullish stance and expect the price to stay in a long-term uptrend.
However, the long-term technicals would deteriorate on a close below the trend line at $1.270, invalidating my bullish thesis.