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Traders are presently buying the dip following yesterday’s bloodbath. Polygon (MATIC) shows signs of a bullish reversal after a steady decline pushed its price to lows at $1.46 from Oct. 29 high of $2.31. At the time of publication, MATIC was trading marginally up in the last 24 hours at $1.58. Polygon has unveiled an upcoming STARK-based, EVM-compatible Rollup, dubbed Miden to overcome technical challenges such as congestion on the Ethereum network. Polygon Miden is an advanced ZK Rollup that supports arbitrary transactions and automatically generates STARK proofs of transaction execution via the Miden VM. Alongside, Polygon continues to pursue its drive for ZK (Zero-Knowledge) cryptography as the most promising technology for scaling blockchains, even committing $1B from its treasury to support these efforts.
Resistance Levels: $2.38, $2.00, $1.73
Support Levels: $1.50, $1.25, $1.00
MATIC/USD Daily Chart: Ranging
MATIC/USD Daily Chart
MATIC could be due for an upside correction following the stabilization near the minor ascending trendline support at $1.46. The upturning moving averages may suggest that bulls are not out of the picture yet. That said, the $2.16 – $2.31 area has been rejecting upside movements over the past few sessions.
Thus, a clear breach of that wall may bring new buyers into the market, likely sending the price towards $2.48 or even the $2.89 all-time high. Otherwise, a decisive close below the floor of $1.46 may stretch towards the strong support at MA 200 ($1.35) where the bulls may give the upswing another chance.
MATIC/USD 4-Hour Chart: Ranging
MATIC/USD 4-Hour Chart
MATIC is attempting a rebound after hitting support at $1.46 on Nov. 16. An oversold RSI prompted sellers to take profit, offering the MATIC/USD pair a chance to claw back some losses. Running higher, the bulls may take a rest within the $1.62 – $1.73 (MA 200) region before a tougher battle takes place near the $2.15 and $2.22 hurdles.
Even though the new bearish crossing between the MA 50 and 200 suggests the continuation of the present downtrend, the chances of a bullish reversal remain. In this case, support is envisaged at the $1.44 and $1.28 levels. In brief, MATIC/USD may attempt to recover some losses in the near term, although the trend signals are still pointing towards consolidation.
