Matic Network, now Polygon the ultimate framework to improve interoperability between Ethereum Blockchain and its interoperable Networks, has recorded a good inflow of traffic over its network. This inflow has resulted in a spike in the value of its native token, but could not sustain.
The supporters of the platform have always registered their dissatisfaction that the currency is undervalued since its inception. But in a recent announcement, Coinbase extended their support to several tokens including Polygon.
However, the MATIC Price rose a staggering 1900% in just three months. It has rocketed from $0.044 on February 1, 2021, to $0.4172 today in the price levels. With this meteoric rise, Matic boasts a market capitalization of $1.8 Billion. The currency also gained a base volume of $400 million in the last 24 hours.
Can The MATIC Price Meteoric Surge Sustain?
After hitting an all-time high of $0.541 on March 12, 2021, the currency has experienced selling pressure. The Longtime HODLers must be booking their profits, which has sent the trend into a descending parallel Channel.
The Exponential moving averages, Moving Averages Convergence and Divergence data show a downtrend. However, there is a good support level at $0.33 that could act as a trend-reversal zone. The 50 Simple Moving Average is in line to offer support. But if bypassed, buyers will be forced to seek support at the 100 SMA and 200 SMA, respectively.
There is an opportunity for a Long trade if the price crosses over the resistance line drawn parallel with the Lower highs. This breakout may result in a price action trade to trigger buy orders. Buy orders at around $0.4, if sustained, could also break the all-time high set a couple of days back.
The triangle pattern is being formed with a strong support line that could result in a bounce back to its ATH. As per MACD, the bullish run has started, but what is more important is if it sustains the levels to consolidate. If consolidation is observed over $0.46 levels, there are good chances of the upward trend to follow.
- Strong support level: $0.33
- Resistance Level: $0.42
- MACD- Bearish
- Daily Chart- Bullish 6%