Polygon (MATIC) has been wrestling with a lack of direction on the higher timeframes, despite positive sentiment rippling through the broader cryptocurrency market. This comes after Bitcoin (BTC) surged past $70,000, leaving investors wondering if MATIC can follow suit.
MATIC’s Stalled Momentum
Earlier in the year, MATIC bulls managed to establish $1 as a support level in March. However, they were unable to maintain this momentum, with the price plummeting to the $0.6 level – even dipping below January’s low of $0.69.
Currently, MATIC is trading within a two-month range of $0.75 to $0.62. The midpoint of this range, $0.685, has acted as a crucial support level over the past month and is likely to offer a bounce if retested.
Technical Indicators Offer Mixed Signals
The 1-day Relative Strength Index (RSI) sits around the neutral 50 mark, indicating a lack of clear buying or selling pressure. However, a rise in the On-Balance Volume (OBV) above recent lower highs could be an early sign of MATIC gearing up for a breakout.
Breaking out of the current range presents another hurdle: a cluster of long liquidation levels at $0.8 and another at $0.762. These areas could trigger a reversal, even if MATIC surpasses the $0.75 range high.
Also Read: Polygon’s Paradox: Millions of Users, But Stagnant DeFi and Falling Price – Can They Recover?
Trading with Caution: A Buyer’s Opportunity?
Given these factors, investors should exercise caution. The $0.75-$0.8 zone could act as a strong resistance area. A revisit to the mid-range support of $0.685 could present a potential buying opportunity for those willing to take calculated risks.
June’s Outlook: A Breakout or Continued Stagnation?
Whether MATIC can overcome these hurdles and finally break out of its current range in June remains to be seen. Careful observation of technical indicators like the OBV and price action around the resistance zones will be crucial for traders navigating the month ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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