The last month saw Polygon emerge as the best-performing digital asset following positive deal announcements by JP Morgan, Instagram, Starbucks and Disney. However, the FTX crash caused a slowdown across digital asset markets which caused the price of Polygon to break below the $1 mark.
Polygon (MATIC) is trading lower compared to the broader cryptocurrency market which has seen several major coins post new short-term highs. The Polygon price is trading above the pivot $0.8181 support zone. The Bollinger Bands are stretching within a predictable range, however, there have been multiple breakouts above the upper BB on the 2-day MATIC/USDT chart.
At present, three white soldiers preceded a long candle stick which is almost breaking above the middle band. Here is a snapshot of the latest chart:
MATIC/USD by TradingView
MATIC Technical Analysis
The price of Polygon (MATIC) has dropped by 2.24% in the last 24 hours and currently trades within a tight range of $0.7894 and $0.8218. MATIC’s downward stride seems to have no negative impact on trading volumes after a 24-hour dramatic rise of 25.65%. The market capitalization recorded a tiny drop of 2.50% and has now touched $6.92 billion.
According to technical analysis of Polygon’s MACD and the RSI, the price action of the coin is generally bearish. The Relative Strength Index is at 33, after dropping from 60 at the start of the day which therefore indicates a falling trend. Reinforcing the theorem is the 9-day exponential moving average (EMA) which is pointing downwards to support the falling trend. The MACD is also showing short negative red bars to indicate strong bearish sentiment.
On the 2-day chart, buyers have been attempting to maintain a steady uptrend above $0.8200, unfortunately, sellers seized the moment in today’s early trading session and are pulling the Polygon’s price below minor support at $0.7890. If the bulls manage to overcome selling tension, the price of MATIC/USD will retest last week’s $0.9 support. The price is going to plummet further below $0.8 if current support fails to sustain upward momentum.
Overall, there are 11 major indicators giving a sell signal, and only 3 showing a buy signal while 10 are neutral. Oscillators are sitting on the fence with only 2 indicating a buy signal, 9 on the neutral and none indicating selling pressure. On the other hand, 11 moving averages are indicating sell signals, 1 is pointing towards a buy and 1 is neutral. As you can see, the Polygon market is generally bearish. The price could continue dropping and close the year at lower lows if no positive reversal takes place in the upcoming days.
Polygon Technical Analysis FAQs
1. What is Polygon’s TVL?
TVL (Total Value Locked) is a metric that represents the total value of assets that are currently being held in smart contracts on a particular blockchain. In the context of Polygon, TVL refers to the total value of assets being held in smart contracts on the Polygon network.
TVL is often used as a measure of the size and activity of a decentralized finance (DeFi) platform. It’s important to note that TVL can fluctuate over time and may not be a reliable indicator of the overall health or success of a DeFi platform. Other factors, such as the number of users, the volume of transactions, and the stability of the platform, can also be important considerations when evaluating a DeFi platform. Here is total TVL and adjusted TVL data for Polygon, according to DefiLama:
Source: DeFiLama
2. Is Polygon Good for Developers?
Polygon is among the top 5 blockchains with notable numbers of protocols launching on its chain. The blockchain slid from the top 3 positions recently, and despite being a newcomer relative to Ethereum; it seems the chain is a good contender for programmers who want to launch their smart contracts.
Conclusion
Polygon’s price is trending bearish lately even after posting record gains at the close of last month; at a time when the majority of coins were trending downwards and posting lower lows.
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