Arbitrum (ARB) Bulls Retake Control While Polygon (MATIC) Offers Another Buy-the-Dip Opportunity, But Metrics Signal Caution
The cryptocurrencies Arbitrum (ARB) and Polygon (MATIC) have both surged around 4% over the last 24 hours, reigniting bullish momentum. However, our analyses caution that certain metrics suggest traders should exercise patience before going all-in on these rallies.
Polygon’s Potential Rebound
The blockchain scaling solution Polygon has started to recover after a healthy correction over the past week, according to the X account “World Of Charts.”
Our analysis shows MATIC bottomed around $0.90 after retracing from highs above $1.20 following a bullish run from late January.
With MATIC’s price closing bullishly yesterday up around 10%, “World Of Charts” sees this as an opportunity to “buy the dip” in anticipation of the token retaking its former highs over $1.20. However, we can see that the relative strength index (RSI) is still in “sell” territory around 45, and the 50-day simple moving average (SMA) is currently acting as resistance that needs to be cleared.
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Show more +The account “Nikyous” highlighted how patient investors need to be, recounting, “I remember selling $MATIC right before it started pumping in 2021…it did 100x in 3 months, from 100m to 10b mc after that. Buying back higher is ok too but I know is hard AF.” This underscores both the potential for life-changing gains but also the intestinal fortitude required when investing in cryptocurrencies.
Arbitrum’s Bullish Technical Break
Meanwhile, layer-2 scaling solution Arbitrum’s token ARB is also flashing some bullish signals after a recent consolidation period. “World Of Charts” stated “$Arb Finally #Arb Has Already Started As Expected,” pointing to a hammer candlestick three days ago followed by a long green candle breaking above a key resistance level.
Further analysis shows that although ARB has continued its upward trajectory today, its price is yet to push through the 50 and 100-day SMAs which are currently acting as resistance overhead. Additionally, ARB’s RSI is at a low level around 40, suggesting plenty of potential runway before becoming overbought should the uptrend persist.
Both MATIC and ARB appear to be in the early stages of potential recovery rallies after weeks of choppy price action. While the bullish momentum is reemerging, further analyses urge caution as critical technical hurdles remain that could challenge the sustainability of these upswings. As “Nikyous” highlighted, patience is key when investing in the highly volatile cryptocurrency markets.
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