MATIC — Overview
The following information provides a high-level summary of the MATIC technical analysis.
MATIC — Current Status
Polygon’s MATIC currently trades at $0.88, reflecting a slight loss of 0.5% in the last 24 hours.
However, the coin finds itself at a critical juncture. On the one hand, it trades along an upward trendline tracing back to the start of May. On the other hand, conversely, it precariously hovers above a major support level at $0.875.
If this upward trendline is breached, we anticipate that the support will similarly break, potentially triggering a downward movement to $0.845, equating to a 5% decline. This downward scenario seems plausible given the bearish shift in the overall market.
The bearish setup of MATIC’s indicators on the 4-hour chart lends credence to the potential downward scenario. In addition, the Simple Moving Average (SMA) and Exponential Moving Average (EMA) reflect a robust short-term downtrend, although both remain neutral over the medium and long term.
The Relative Strength Index (RSI) stands neutral, while the Average Directional Index (ADX) signals a weak trend, suggesting a lack of a strong market direction.
The Moving Average Convergence Divergence (MACD) and the Momentum (MOM) indicators align with the bearish outlook. In addition, the Ultimate Oscillator also points towards a bearish sentiment, further supporting the possible downward trajectory.
Trade Setup & Outlook
Traders should keep a close watch on both the upward trendline and the support level at $0.875. Should a break occur, opening a short position targeting $0.845 could be an optimal move.
The potential downward slide, coupled with the bearish market sentiment, may provide a timely opportunity for traders to capitalize on the situation.
Polygon’s MATIC token trades at $0.88 and is teetering on a decisive edge. Trading along an upward trendline while standing just above a major support level at $0.875, MATIC could be bracing for a 5% drop to $0.845 should these levels break. Therefore, traders should carefully monitor the token’s price action for signs of a breach, which could open a short position opportunity targeting $0.845.
About Polygon (MATIC)
Polygon, previously known as Matic Network, is a framework for building and connecting Ethereum-compatible blockchain networks. It aims to provide faster, cheaper transactions on the Ethereum mainnet while retaining key attributes such as security and decentralization.
Polygon employs a multi-chain approach with a hybrid POS-Plasma framework. MATIC, the native utility token of Polygon, is used for various activities like payment for transaction fees, staking, and participating in the network’s governance.