Cryptocurrencies

The Polygon Price is sliding, But good support Lurks below

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Written By: Elliott Laybourne
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    Summary:
  • The Polygon price has closed lower in six out of the last seven days and is trading 25% below the September high.

The Polygon price has closed lower in six out of the last seven days and is trading 25% below the September high. However, several significant support levels below the market should help the MATIC token regain bullish momentum.

Polygon (MATIC) has performed poorly in November, despite Bitcoin and Ethereum setting new records. MATIC has lost 10% in value this month, causing it to slide down the crypto league table. At the current valuation, Polygon’s market cap is $11.93 billion, ranking it the 21st-largest cryptocurrency, behind Algorand (ALGO).

The underperformance in November is strange considering the token finished October at its highest-ever closing level. But since then, the price has been trending lower, even as the combined value of the cryptocurrency market reached a record $3 trillion valuation. However, it’s not bad news for the bulls as the Polygon price is still in a long-term uptrend. Furthermore, the major moving averages sit at the bottom end of the trend channel, reinforcing its support.

MATIC Price Analysis

The daily chart shows that the MATIC token has been trending higher in a rising channel for five months. The trend-line at $.1270, forming the bottom edge of the channel, is the pre-eminent support. The 50, 100, and 200-DMA’s at $1.518, $1.445, and $1.333, respectively, add to the robust scale-down support.

If Polygon continues to move lower, it should encounter buying, considering the confluent support below the market. On that basis, I maintain an overall bullish stance and expect the price to stay in a long-term uptrend.

However, the long-term technicals would deteriorate on a close below the trend line at $1.270, invalidating my bullish thesis.

Polygon Price Chart (Daily)

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This post was last modified on Nov 11, 2021, 07:34 GMT 07:34

Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne