Key Insights
- The price of Polygon (Matic) has been on the decline for most of the year.
- Through this decline, the cryptocurrency has formed a falling wedge, with the $0.4 zone serving as a support.
- The cryptocurrency needs to break above its 200-day EMA around the $0.47 price level to confirm a breakout.
- Said breakout has the potential to lead it further upwards to the $0.77 local high.
- If the bulls maintain their momentum, Polygon could continue further upwards to the $1 zone or even higher this year.
The Polygon price has been relatively bearish over the last few weeks, with data from CoinMarketCap showing an ongoing decline since early December of last year.
News and analyst insights about this cryptocurrency have been relatively muted over the medium to long term, because of this radio silence from its bulls.
However, what are the odds that a bullish impulse move is incoming for Polygon?
Will we be seeing a rally towards the $1 mark soon?
Here are all the things to know.
Price updates on Polygon
According to data from CoinMarketCap, the Polygon crypto has been down by around 2% over the last day, as of writing.
The cryptocurrency is also showing a harsh 8.5% decline over the last week, indicating that the bears strongly have the upper hand.
The same is true for the cryptocurrency on the weekly and monthly timeframe, as illustrated by the 29% drop In trading volumes.
The interesting thing about the Polygon price outlook, however, it the steadiness in its Open interest according to Coinglass.
This metric has been hovering between $90 million and $130 million for months, indicating that while investors aren’t massively buying in at the moment, the bears haven’t been able to exert undue influence on the cryptocurrency either.
What Are The Charts Saying?
A quick look at the 4-hour chart shows that Polygon has been on a steady decline since hitting the $0.77 high in December of last year.
This decline so far, has helped the cryptocurrency to form a descending triangle as illustrated below:
The interesting thing about this formation is that it typically indicates that the bears are unwilling to sell below the base of the formation.
This base is earmarked by the $0.4 price level, and has provided sturdy support for the cryptocurrency for a month now.
In essence, the price of Polygon is currently entering a squeeze, and could break out to the upside soon.
Interestingly, the upper trendline of this formation is marked out by the 200-day EMA around the $0.47 price level.
In essence, investors should be on the lookout for a possible break above this trendline, which could lead Polygon toward its local high of $0.77.
If the bulls are able to maintain the momentum, Polygon should be set to target the $1 mark or even higher.
Price predictions for Polygon according to data from CoinCodex, show that the cryptocurrency could be on its way to hitting the $0.48 zone (a breakout) over the coming month.
The online resource also points towards a yearly high of $3.26 in August of this year, which would be a 650% price increase from current levels.
