Even with the encouraging reports of the Polygon deal and ETH whales becoming one of the most acquired tokens, the future of its parent token, MATIC, does not look bright.
From September 13 onwards, it fell in line with the rest of the cryptocurrency market. The rise from September 7-12 was eventually denied by the bears at the $0.9403 resistance area.
With the same time frame of 5 days since then, the value of the token has dropped by a whopping 20.65 percent. At the time of writing, the token price was hovering around the Fibonacci retracement level of 78.60, between $0.6898 and $0.7770.
Traders should also keep an eye on the 61.80 Fib level (now at $0.6989) and the 0.7185 support level. These two factors have bucked the downtrend and given the upward momentum on the hourly ticks, much-needed support.
Polygon Bullish Momentum Hints At Demand
Also, bullish momentum appears to be developing around the 1-hour time frame. An increase in the value of the Stoch RSI indicates that the demand for the cryptocurrency is increasing.
In addition, the momentum indicator shows that the trend is rising. However, the larger amount of momentum produced here can have a big impact on the bigger picture.
This smaller growth trend can be attributed to the expansion of development activities in the Polygon chain. This increase in development activity may indicate that the team is integrating new features or patching existing ones, according to a recent analysis.
This further increases the confidence of investors and traders. However, as the crypto market recovers from the September 13 selloff, the recently announced partnership between Polygon and Flipkart could accelerate the adoption of MATIC and contribute to the expansion of the Polygon ecosystem.
MATIC Price: Potential buying pressure
In light of this, can recent developments at Polygon inspire confidence? Indeed, it did. However, the recent progress was not the primary cause of the price increase.
As the price fell, indications also pointed to a strong buy signal. The bull-bear indicator reveals the same information. As the bulls gain momentum, the Stoch RSI will also rise, indicating a large increase in buying pressure.
This may affect MATIC’s full recovery. If the bulls are able to stabilize at the 71.80 Fibonacci level, another bullish rally can be envisioned to support the upward price momentum.
The $0.7395 price range represents the primary resistance level on this chart. If the bulls gain momentum and break through this resistance level, the MATIC token could be on the verge of a recovery.
MATIC total market cap at $5.9 billion on the daily chart | Source: TradingView.com Featured image from Coincu News, Chart: TradingView.com