- Summary:
- Polygon price has been on a strong recovery since hitting multi-year lows earlier in August, with migration to POL tokens providing fuel.
Polygon (MATIC) price continued its steady rise on Wednesday, gaining 2.4 percent at the time of writing to go for $0.472. MATIC slipped to multi-year lows on August 5th, but has risen by 39 percent since that time. Nonetheless, it is still down by -14 percent in the last month and is at -51.3 percent year-to-date. That puts it among the poorest performers in the top 50 crypto asset rankings this year.
The latest recovery is partly attributed to Polygon’s transition from MATIC to POL token, which is expected to enhance performance and efficiency. Starting September 4, POL will become the native gas and staking token for the Polygon PoS network. The Ethereum scaling network says that POL will be central to its AggLayer project, which will be key to driving its multi-chain ecosystem.
MATIC momentum
On the 4h chart seen below, MATIC price has sent three key bullish signals. First, the 20-EMA has crossed above the 50-EMA, with the current price above both indicator readings. Secondly, the price has recently crossed above the 200-EMA as shown by the green ellipse. That is significant, as MATIC price has traded below that mark for several months. Thirdly, the RSI reading is at 83, which affirms the strong bullish signals sent by the EMAs. However, that also shows that the token is overbought, and could start feeling downward pressure from profit taking.
Support and resistance levels
MATIC price will likely sustain the upward momentum if the buyers keep it above the 0.470 pivot level. That will likely set it up to encounter the first resistance at 0.476. However, if the bullish control is extended at that mark, it could break above that level and potentially test the next resistance at 0.480. Conversely, moving below 0.470 will favour the sellers to take control. The downward momentum could initially find support at 0.465, but extended control by the sellers could breach that level and invalidate the upside narrative. Furthermore, it could lead to the establishment of the second support at 0.460.
