Polygon [MATIC]: A 15% potential rally is likely if this support is secured

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Dis­claimer: The infor­ma­tion pre­sent­ed does not con­sti­tute finan­cial, invest­ment, trad­ing, or oth­er types of advice and is sole­ly the writer’s opinion

  • MATIC was bull­ish on the 12-hour chart.
  • Hold­ers saw prof­its, and extra gains could be like­ly if a key sup­port lev­el is secured. 

Poly­gon [MATIC] offered investors more gains into the week­end. It broke above its 12-day-long price con­sol­i­da­tion range on Thurs­day, 26 Jan­u­ary, offer­ing a 15% gain. 


Read Poly­gon [MATIC] Price Pre­dic­tion 2023–24


But the ral­ly slowed after hit­ting the over­head resis­tance of $1.1900. At press time, MATIC’s val­ue was $1.1555.

The $1.1252 support level: Can it hold?

Source: MATIC/USDT on TradingView

MATIC’s Jan­u­ary ral­ly was slowed to two weeks by a price con­so­la­tion range of $0.9283 – $1.033. But the break above the range saw MATIC hit the bull­ish tar­get of $1.1252. 

The above tar­get was flipped into an imme­di­ate sup­port lev­el. If the $1.1252 sup­port lev­el proves steady in the next few days, MATIC could tar­get its Novem­ber high of $1.300 – a poten­tial 15% rally. 


Is your port­fo­lio green? Check out the MATIC Prof­it Calculator


The Rel­a­tive Strength Index (RSI) on the 12-hour chart was 66, indi­cat­ing a bull­ish MATIC. There­fore, the above bull­ish bias could be like­ly in the next few days. 

But a drop below the $1.1252 sup­port would inval­i­date the bias. Nev­er­the­less, bulls could find anoth­er steady lev­el at $1.0733 in such an event of a downtrend.

MATIC recorded whale count transactions, and holders enjoyed massive profits

Source: San­ti­ment

As per San­ti­ment data, there were a hand­ful of whale trans­ac­tion counts above $100K by press time. The his­tor­i­cal pat­tern showed that some whale moves were asso­ci­at­ed with price surges. As such, we could expect anoth­er price rally. 

In addi­tion, long-term hold­ers saw prof­its, espe­cial­ly after Thursday’s bull­ish break out of the price con­sol­i­da­tion range. The above posi­tion is based on the ris­ing 90-MVRV (Mar­ket Val­ue to Real­ized Value). 

Notably, the price con­sol­i­da­tion peri­od saw MVRV rest on the neu­tral line and even drop into the neg­a­tive side, show­ing hold­ers saw loss­es dur­ing the peri­od. An extra ral­ly could see hold­ers pock­et more gains. 

How­ev­er, the price/open inter­est diver­gence at press time, as indi­cat­ed by Coin­glass, could delay a strong momen­tum in the short term. It shows mon­ey moved out of MATIC’s futures mar­ket despite the ris­ing prices.

Source: Coin­glass

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