The MATIC price is turning higher from a significant technical support area, which suggests Polygon has weathered the storm. Polygon (MATIC) is higher by +2.30% to $1.727 on Wednesday, extending its 7-day gains to 19%, and paring the loss this month to around -11.15%
Similar to many cryptocurrencies, Polygon has experienced heightened volatility in November. At last week’s low, the MATIC token had dropped almost 40% from October’s multi-month high of $2.310. However, the price found good support at the 100-Day Moving Average (DMA) and since reversed higher. As a result, Polygon’s market has climbed above $12 billion, lifting MATIC above Bitcoin Cash (BCH) to rank the 20th-largest cryptocurrency behind Chainlink (LINK).
The move higher in the last few days follows the news that digital asset Institution NEXO will list Polygon, offering MATIC holders staking rewards of up to 20% APR. The alliance will also help Nexo push into NFT’s and the Metaverse, potentially benefiting both sides. Subsequently, buyers have taken advantage of the recent decline, helping the MATIC token maintain its long term bullish trajectory.
The daily chart shows the MATIC price is holding above the 50, 100 and 200-DMA’s ($1.648, $1.500 and $1.391). Furthermore, the price remains in its five-month uptrend.
As long as Polygon remains above the 200-DMA at $1.391 and the rising trend line at $1.360, it should continue higher, targeting trend resistance around 2.500. However, a break of trend support would suggest the bull market has run its course and likely lead to an extended sell-off.
On that basis, a close below $1.360 invalidates the bullish thesis.
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This post was last modified on Nov 25, 2021, 01:40 GMT 01:40