Polygon MATIC Technical Analysis: How MATIC’s Recent Price Rebound can Trigger Further Recovery

WHAT IS POLYGON (MATIC)? 

Polygon is a Layer 2 scaling solution for Ethereum scaling and infrastructure development. The project aims to create “Ethereum’s internet of blockchains”, by solving scalability issues of existing blockchains, and offers developers with a set of tools to build ultra-scalable and high-performance blockchains and decentralized applications (DApps).

Read more about Investing in Polygon Matic Coin

Polygon MATIC Coin: An Overview

Polygon, one of the most successful proof-of-stake consensus protocols running as a sidechain on the Ethereum network, has had a bad couple of months. But that has largely been in line with the broader market bearishness. It also brought about scalability to the network, which Ethereum by itself lacked to quite a large extent and also took a step towards reducing gas fees.

Polygon, which is headquartered in India, recently even partnered with the Maharashtra government to introduce blockchain infrastructure into the system to issue caste certificates in the state. This was done to weed out bad actors and corruption from the system.

But despite all that, why is MATIC Price falling?

Ever since the beginning of 2022, Polygon’s native token MATIC has been sliding down steadily. However, over the past day, it has seen almost a 25% jump, according to data from Coingecko.

In fact, it wasn’t a one-off occurrence. MATIC has been displaying green candles over the past five days.

Check out the Latest MATIC Coin Price, Charts, and Data.

Technical Analysis of Polygon (MATIC)

What do MATIC Coin technical indications suggest? 

As mentioned before, MATIC has been on a strong downward trend as indicated by the blue channel on the chart above. And it has been trading below its 50-day moving average (depicted by the yellow line) for a long duration in the same timeframe.

Even before its recent rally, its RSI has been well within the oversold territory so a rebound was on the cards.

Source: Tradingview 

MATIC Price Analysis: Is there light at the end of the tunnel?

Taking a closer look at the technical indications, it does suggest some green shoots may be on the way. MATIC’s five day rally has brought it very close to its 50-day moving average (indicated in yellow). All things considered, if the token’s price is able to breach the 50-day moving average, it could trigger some more upside rally in the coin.

Coinciding with the 50-day moving average is the upper trendline resistance of the downward channel (indicated in blue) and the consolidation region (marked in purple). This further lends support to the idea that a breakout over these levels can trigger a rally.

Hence a breakout over $0.6-$0.8 (~INR 45 – 62) can provide the necessary push upwards. The past five days of rally has been supported by heavy trading volumes, suggesting healthy participation from both retail and larger institutional players in MATIC’s rally.

Also, the Relative Strength Index (RSI) which is currently trading at about 47 as of writing this, would also sort of act as a price cushion in case of some profit-booking that may occur at current levels. The Moving Average Convergence Divergence (MACD) indicator also displayed some optimism with its MACD line crossing over the signal line.

Additional Read: Matic Price Prediction: Will MATIC Price Reach INR 150 by the end of July?

Bullish targets for MATIC Coin amid rally 

From current levels, a breakout over $0.8 (~INR 62) can trigger a near 100% rally to around $1.6 (~INR 125), resulting in you doubling your money on the investment. The $1.6 level can be expected to become a tough supply zone to break through in the short to mid-term.

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