- MATIC was up by nearly 6% in the last 24 hours.
- Metrics and market indicators looked bearish.
Polygon [MATIC] has witnessed multiple price corrections over the last month as it keeps drifting down on the list of the top 20 cryptos.
However, the last 24 hours looked promising as the token’s daily chart turned green. Will this result in MATIC’s full recovery?
Polygon is facing trouble
CoinMarketCap’s data revealed that MATIC’s price dropped by more than 26% in the last 30 days. The massive drop in price pushed MATIC down to the 18th spot on the list of the top 20 cryptos.
World of Charts, a popular crypto analyst, recently posted a tweet highlighting Polygon’s behavior. As per the tweet, MATIC was still consolidating inside a descending channel.
In order for MATIC to recover from the losses, it’s crucial for it to go above the $0.77 resistance level. A breakout above that could result in a massive bull rally.
Things in the last 24 hours looked optimistic for MATIC, as its token’s price increased by 6%. At the time of writing, it was trading at $0.7419 with a market capitalization of over $7.3 billion.
Thanks to the recent price uptick, the token’s MVRV ratio has improved. This meant that more investors were in profit.
However, despite this, selling pressure on Polygon was high as its exchange inflow increased. Additionally, its Supply on Exchanges went up while its supply outside of exchanges dropped.
This further proved the fact that investors were selling MATIC, which might cause trouble for the token’s bull rally.
Source: Santiment
Polygon’s road ahead
Since metrics suggested a price correction, AMBCrypto then checked MATIC’s daily chart to better understand whether MATIC would be able to break above $0.77 anytime soon.
We found that, like metrics, most indicators also remained bearish on Polygon. The Bollinger Bands pointed out that MATIC’s price was in a less volatile zone.
On top of that, both MATIC’s Money Flow Index (MFI) and Chaikin Money Flow (CMF) registered downticks. This indicated that the token’s bull rally might come to an end soon.
Nonetheless, the MACD supported buyers as it displayed a bullish crossover.
Source: TradingView
If a utopian scenario is considered in which MATIC sustains its bully rally, it still might have to overcome an obstacle.
Read Polygon’s [MATIC] Price Prediction 2024-25
AMBCrypto’s analysis of Hyblock Capital’s data revealed that MATIC’s liquidation would rise sharply near the $0.76 mark. Whenever liquidation rises, it increases the chances of a price correction.
Therefore, MATIC might successfully go above that level before setting eyes on $0.77 resistance.
Source: Hyblock Capital