After several hours of bearish volatility, now the price of most cryptocurrencies are rebounding upwards. Polygon (MATIC) is following this trend, with a price being defended on an immediate support, preventing losses from prolonging.
At the time of this writing MATIC is trading at $1.06, accumulating a slight loss of 1.16% in the last 24 hours. With a market capitalization of $6.689 billion, it is the 16th largest cryptocurrency in the crypto ecosystem.
The adoption of the Polygon chain as a scalability solution of the Ethereum network continues to increase at great speed, as important decentralized applications such as Aave, Sushi or Curve, have extended their operations towards this second layer network.
Such has been the success of this chain that it already managed to outperform Ethereum in terms of daily unique active wallets. According to DappRadar, there are more than 73,000 active wallets, which means 13,000% growth over the previous year.
If we look at Polygon’s official Twitter we have that the most recent positive news for this chain include: the adoption by OpenOceanGlobal, the successful vote to include Polygon in the successful Trust Wallet, and the launch of Avail (a new sidechain focused on data availability).
Technical analysis of Polygon price (MATIC)
MATIC’s price remains enclosed in a tiny horizontal range, within a larger descending triangle-shaped one.
With yesterday’s fall the quote visited immediate support at $1.06. Losing this level could open up space for sales up to a minimum of $0.89. Below the next level of support is at $0.75.
So far it does not seem too likely a further fall, I would say 55-45% in favor of the bears. It would increase up to 65% in case support at $1.06 is lost.
Even with higher sales unfolding, we have that the strong buying pressure that exists in the large support area where the price is, could quickly defend MATIC.
To think of purchases, the resistance at $1.20 must be traversed, which in turn means traversing the downward resistance that I frame in the chart below. This would also be a sign of a resumption of the larger trend.
Medium-term trend could take the price quite far very soon
When we look at the Polygon weekly chart (MATIC), we quickly see that the fall of the last weeks to the moment is nothing more than a totally healthy and necessary correction.
Over the past few days the bearish strength has been decreasing, and the rejection of low prices tells us that the bottom may have already been reached.
In this timeframe we also see the relevance of support at $1.06. Losing it could be making way for higher sales in the short term.
However, the huge bullish dominance we saw in the first half of the year tells us that buyers may surprise us very soon.
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