Polygon’s MATIC price has shown various indications that it will embark on a bullish run since its fall from grace in December that saw it lose over 27% in under 48 hours.
According to the small moving average indicator (SMA), MATIC will see up to 13% price gain in the coming weeks. Although the crypto is set to experience an uptrend soon, its bullish run will almost certainly run into a very strong resistance ceiling that will, in all likelihood, put a stop to its run. This, in part, can be attributed to its long consolidation period between the 50 and 100 days long SMA. To break out of this cage will take proportional efforts and a massive price drive.
MATIC Gearing Up For Price Reclamation
In the last week of December, on 27th, the layer 2 network’s token set another high like it had been doing since the beginning of the month, only that this new high became its record high of $2.93.
Investors in the community were optimistic about its prospects, with most pinning that it will continue its bullish upswings in bursts as the year-end came closer and transitioning into 2022 began. However, the token failed to sustain its run, leading to a very sharp price correction that saw its price cut through the demand zone to fall to $2.43, effectively turning around a likely price run-up into a breaker.
Since breaking its all-time high record in December, Polygon price value has dropped by over 27% to its current trade price of about $2.12, which is in a range of the 50-day SMA of $2.19 and 100 day SMA of $1.91.
MATIC didn’t fall below its weekly support of $1.94; rather, it has bounced off the support region and is headed towards the 50-day SMA, which could effectively transform into a 10% price gain to a price of $2.35. Should the crypto token make it to this phase, it could retest last December’s breaker, thereby increasing trade price from $2.43 to $2.63, bringing the total price gain to just over 13%.
MATIC To Reach Price Decision
Despite optimistic projections gleaned from the SMA analysis of the token’s price chart, attention must be paid to the 50-day SMA mark. MATIC price will most certainly encounter fierce rejection at the resistance ceiling, subsequently leading to the retesting of the 50-day SMA at the $2.19 price region.
This ultra resistance junction will be the deciding moment for the token; whatever direction MATIC breaks out in will be the deciding trend for it in the coming weeks, either a bullish run or a bearish run.
A six-hour candlestick close for the token below the 100-day SMA of $1.91 will invalidate the bullish speculations.
Polygon’s Tough Position
Price movement that MATIC will undergo later in the future is currently shrouded in fog as can be evidenced by the failure of analysis beyond the strong resistance region, while sentiments in the community field optimistic future for the token, continuous stats continues to deal blows to the token’s intrinsic growth index outlook.
Stats from Santiment’s Network Growth metric is another indicator of the token’s tough spot currently; the growth metric shows that MATIC’s growth has dropped by almost 46% since its $2.93 all-time high on December 27 last year. The on-chain analytics leverages the number of addresses joining a network to indicate a project’s growth, stagnancy or decline.
In the case of Polygon, the network growth has fallen from an index of 4,693 to 2,535, showcasing an overall decline that indicates the industry’s investors lack interest in the token at its current price levels.
MATIC is currently ranked 13th on Coimarketcaps cryptocurrency rankings based on market capitalization; as of press time, it trades at $2.34.