The price of Polygon (MATIC) and other notable crypto assets has been experiencing some volatility recently.The fluctuations present in the MATIC market can present traders and investors with profit-earning opportunities.
Within the last seven days, the price has witnessed a significant increase of 3.25%, indicating strong momentum from the bulls.
Analyzing The Polygon (MATIC) Bullish Momentum
Polygon is the scaling solution for Ethereum and the networks increasing adoption could increase its price as the demand grows over the long term. As of today, the price of Polygon (MATIC) is at $0.8861 in the last 24 hours, representing an increase of 1.64%.
This price movement suggests a positive market sentiment and a growing demand for the asset. It also indicates that the bulls are in control of the market. Also, MATIC Dominance & Social sentiments are above 50%, indicating neutral pressure.
Since both the market dominance and social sentiment are rising above 50%, it implies that MATIC has a positive sentiment among investors in the crypto market.
The MATIC/USDT pair has formed a bullish flag pattern, suggesting a potential trend reversal and an end-to-downtrend movement.
The breakout that occurred in the bullish flag pattern may be considered a confirmation of a trend reversal for traders and investors. As the asset trades between its support and resistance levels of $0.8399 & $0.9086, traders are watching these levels closely for possible breakouts.
If MATIC breaks above the significant resistance level, it will trigger a bullish trend. The next support and resistance level will be at $0.5142 and 1.5799.
However, if MATIC breaks below the $0.7536 support level, it could signal a bearish trend, and traders may look for selling opportunities.
MATIC bears are currently trying to build momentum, but the bulls strongly hold their respective positions. This indicates a consolidation phase and a potential long-term uptrend if the bulls maintain this strong momentum.
MATIC Technical Analysis Using Indicators
The token has been on a downtrend since April 18, when the bears took control of the market. But recently, the asset has been showing signs of a potential trend reversal.
The Moving Average Convergence Divergence (MACD) trades above the signal line. This indicates a potential bullish trend in the market. Also, the histogram is above zero with strong green, confirming the bullish sentiment.
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Additionally, the Relative Strength Index (RSI) momentum oscillator has a reading of 42.35, suggesting neutral pressure from the bulls and bears.
The market trades below the 50-Day and 200-Day Simple Moving Averages (SMA). This suggests a possible bearish movement. Nevertheless, the token bounced off a critical support level of $0.88 and may attempt to continue the bullish move.
Featured image from Pixabay and chart from Tradingview