Will Polygon (MATIC) test its pivot point soon after the dip?
Polygon (MATIC) appears to rebound higher after the decline in the previous session, as crypto markets saw a massive sell off following Bitcoin’s sharp drop below $ 50,000. At the time of writing, MATIC / USD is trading at around $ 2.56.
While MATIC manages to hold above the key $ 2.50 level for now, buyers have been unable to maintain the new ATH recently crossed due to a deterioration in overall market sentiment. . However, Polygon’s long-term potential remains strong, especially with Ethereum’s grid congestion and gas cost issues likely not to be addressed anytime soon.
What Polygon offers is an ecosystem for Ethereum-based dApps to operate at higher levels of efficiency, with faster transaction processing capabilities and lower costs. The Layer 2 Ethereum scaling solution recently received a boost after leading DEX Uniswap into its ecosystem, a move several other dApps may repeat soon.
Over the past few weeks, Polygon’s MATIC has been one of the top performers in the market, although most layer 1 cryptocurrencies have languished in a bearish mood among crypto investors. Investors are betting big on the blockchain’s ability to solve Ethereum’s scalability issues, especially after its recent investment in ZK-STARK to help integrate a billion users into the Ethereum blockchain.
While the long-term outlook for the MATIC token remains strongly bullish, the 14th largest cryptocurrency by market cap may be trading under pressure in the near term. Recent Santiment analysis indicates that there does not appear to be any profit taking in MATIC in the market lately, but the number of whales accumulating the Polygon token has declined in recent days. The company expects massive sales in the near term, which could lead to a price correction before it starts to rise again.
MATIC / USD technical analysis
According to famous influencer and crypto analyst Justin Bennett, MATIC needs to release strong resistance at $ 2.70 to go higher. If Polygon can maintain itself above this level and make it a solid support, its price could soon reach $ 4-4.50.
On the MATIC / USD 4-hour chart, smaller moving averages along with major MACD technical indicators and momentum suggest a bearish bias. However, the 50 EMA, 100 EMA, and 200 EMA also indicate interest in bulls.
MATIC / USD
Polygon’s price appears to be climbing back towards the pivot point at $ 2.60. Immediate support is well below $ 2.32 which is an encouraging sign. A break above the pivot point may increase investor confidence and push MATIC higher, so let’s keep an eye on this level for now.