- MATIC faces resistance at $0.5807 but hints at a bullish reversal.
- Polygon’s trading volume spikes by 16.5% amid price pullback.
- The upward RSI trend suggests a potential shift to bullish momentum.
Despite enjoying a promising bull rally at the start of the day, Polygon’s (MATIC) price experienced a pullback after failing to overcome the resistance level at $0.5807. Consequently, the price dipped to an intra-day low of $0.5635 before a modest recovery. MATIC was valued at $0.5687 at press time, showcasing a mild rebound from the day’s low point.
The dip in price saw MATIC’s market capitalization decline by 1.73% to $5,299,919,552. However, the 24-hour trading volume increased by an impressive 16.50% to $250,372,453, signaling heightened trading activity.
This price retracement is likely due to profit-taking by investors who capitalized on the earlier bull rally. Yet, the subtle price recovery indicates persistent buying interest in MATIC, suggesting a potential for further price movement.
On the MATICUSD 2-hour price chart, the 20-day moving average (blue) is positioned below the 100-day moving average (orange), with the former and latter currently touching $0.575 and $0.618, respectively. This trend suggests a possible bearish signal, as the shorter-term moving average crossing below the longer-term moving average is commonly interpreted as a sign of downward momentum.
However, the recent price action shows the formation of green candlesticks as it approaches the 20-day MA, implying that buyers are entering the market to support the price. If this buying pressure persists and the price successfully rebounds from the 20-day MA, it could indicate a potential reversal in the bearish trend.
Adding to this optimistic outlook, the Relative Strength Index (RSI) is moving upwards with a reading of 40.09, indicating a possible weakening of selling pressure and a shift towards bullish momentum. If this RSI trend continues, we may see an increase in buying activity and a potential reversal of the bearish trend.
In conclusion, MATIC’s price dip faces bullish potential as buying interest persists despite retracement, supported by moving averages and RSI rising trend.
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