- Summary:
- The Polygon price has retreated 8% in Asian trading as the market works off last weeks overbought conditions to consolidate above $7.1000
The Polygon price has retreated 8% in Asian trading as the market works off last week’s overbought conditions to consolidate above $7.1000.
As we noted last week, the Polygon price was starting to look a little stretched in the near term. The token which trades under the ticker MATIC, had gained 112% in its run to the April 30th high of $0.9478.
The velocity of the rally had seen the Relative Strength Index (RSI) hit a high mark of 90.80 on the 4-hour timeframe. Normally a reading greater than 70 would indicate that a market has increased too much over a short period of time, leaving the price vulnerable to a pullback.
The latest price of $0.7370 is 23% lower than last week’s high print. The market appears to be entering a consolidation pattern. The last 24 hours of trading have seen the Polygon price locked in the $0.6900 to $0.7500 price bracket.
The recent sideways trading now sees the Polygon price wedged tightly between support and resistance levels, suggesting a break out in price may lie ahead.
An ascending trend line at $0.700, in place from the 24th of April low at $0.3400, is hampered by its descending counterpart at $0.7300.
Polygon Price Outlook
At this level, it’s hard to predict what comes next for the Polygon Price. We advise traders to monitor the situation closely at this critical juncture. Should the price clear the immediate upside resistance, a run to April’s all-time high could once again be on the cards.
A failure to hold the ascending support line at $0.700 can set up a move lower and a test of the March high of $0.542.
Polygon 4-Hour Chart
Follow Elliott on Twitter