Key Takeaways
Polygon’s MATIC token has risen by more than 11% in the past five days.
Now, the token appears to be forming a double bottom pattern.
It must slice through $1.70 to advance to $2.10.
Share this article
Polygon’s MATIC token appears to be bottoming out after declining by more than 58% from its all-time high. Still, on-chain data shows a significant supply barrier ahead that may prove challenging to overcome.
Polygon Encounters Supply Wall
Polygon is approaching a critical area of resistance that could determine where it heads next.
The Ethereum scaling solution’s MATIC token has risen by more than 11% over the past five days as it appears to be developing an Adam & Eve double bottom pattern on its four-hour chart. This technical formation is considered a bullish reversal pattern. It developed after Polygon dropped to $1.24 on Feb. 24 to form a V-shaped valley, surged to $1.70 on Mar. 2, and pulled back again to form a rounded valley near the $1.32 level.
A spike in buying pressure that pushes MATIC above the middle peak of the Adam & Eve at $1.70 could signal the beginning of a new uptrend. If the asset did see a spike in demand, it could surge by nearly 26% to surpass $2.
Source: TradingView
Still, transaction history shows that the $1.70 resistance zone could prove challenging to break.
IntoTheBlock’s In/Out of the Money Around Price model reveals that more than 27,500 addresses have previously purchased over 3.41 billion MATIC at an average price of $1.72. In other words, MATIC has a large supply wall that may absorb some of the recent buying pressure and prevent it from advancing further.
Source: IntoTheBlock
Given the number of underwater holders at $1.71, MATIC needs a decisive four-hour candlestick close above resistance level to validate the bullish outlook.
Failing to overcome the $1.71 hurdle could result in investors selling their holdings to avoid significant losses. A potential increase in downward pressure could push prices to $1.50 or lower.
Disclosure: At the time of writing, the authors of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
Sushi Launches Long-Awaited Trident DEX on Polygon
Decentralized exchange Sushi has released a beta version of its new Trident automated market maker on Polygon. Sushi touts Trident as a new framework for building and deploying AMMs. Sushi…
Polygon Experiences Hours-Long Outage
Polygon, one of Ethereum’s top scaling solutions, is experiencing an outage today, according to various announcements and updates. Outage Is Likely Due to Heimdall Bug Polygon is down. The project…
SandStorm Heads to Polygon, Ethereum After $2.5M Seed Raise
SandStorm aims to connect brands with Metaverse builders. SandStorm Announces $2.5M Raise SandStorm is preparing to launch on Ethereum and Polygon. The Metaverse project will showcase its new platform and…
