Technical and On-Chain Analysis Agree on Polygon Price Trajectory: 608 Million MATIC Form Critical Support Zone, Key Prices to Watch
Traders and investors often rely on a combination of technical analysis and on-chain metrics to navigate market movements and identify potential opportunities. This is the case with Polygon (MATIC), as an analysis from the crypto analytics company altFINS and insights from the prominent analyst Ali shed light on the token’s price dynamics.
According to altFINS’ analysis, MATIC is exhibiting bullish tendencies across all timeframes, including short, medium, and long-term. Their report highlights that MATIC’s price broke out from a sideways channel ranging from $0.75 to $1.05, signaling a resumption of its uptrend. However, while MATIC briefly surpassed the $1.25 resistance level, it failed to sustain this momentum.
altFINS recommends traders to wait for pullbacks to the $1.00-$1.05 support zone for potential swing trade entry opportunities within the uptrend, with a near-term upside target of around 20% back to the $1.25 level. The analysis suggests setting a stop-loss at $0.92 to manage risk effectively.
Regarding momentum indicators, altFINS notes that while the MACD line is below the MACD signal line, suggesting bearish momentum, the Relative Strength Index (RSI) hovers around 50, indicating a neutral stance.
Complementing the technical analysis, on-chain data provided by analyst Ali highlights a crucial support zone for MATIC between $1.02 and $1.05. This support is underpinned by approximately 10,900 addresses collectively holding around 608 million MATIC tokens.
Ali further emphasizes that should this critical support level falter, the next essential demand zone lies near $0.91, where 35,700 addresses collectively hold 394.6 million MATIC tokens, potentially acting as a secondary line of defense.
It’s worth noting that the current price of MATIC is hovering around $1.02 at the time of writing, making the $1.02-$1.05 support zone particularly relevant for traders and investors alike.
While technical analysis and on-chain metrics provide valuable insights, it’s crucial to remember that cryptocurrency markets are inherently volatile and subject to various external factors.
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