Polygon price analysis: Will $1 be conquered?

Polygon (MATIC) has been an outperformer among major cryptocurrencies because it has stayed way above the June lows. This indicates that traders are holding on to their positions and not dumping them in panic. Buyers are trying to push MATIC toward the overhead resistance of $1 as of 1 December 2022.

According to Polygonscan data, the number of unique addresses on polygon has seen a steady rise over the past few months and is nearing the 200 million mark. This suggests that despite the FTX debacle, investor interest in polygon has remained strong.

One of the reasons for polygon’s performance could be its integration with major companies such as Starbucks, Meta, and Reddit. According to Messari, this has helped polygon almost triple NFT sales since the end of September.

Polygon received a further boost when it was chosen by Nike to launch the sports brand’s NFT marketplace, called Swoosh.

Expanding its metaverse offerings, polygon became the first blockchain to host an airport on the metaverse. India’s Bangalore Airport launched Metaport on polygon, where it plans to showcase its T2 terminal, making it easier for customers to familiarise themselves with the airport and its services.

Could polygon go up on the back of the integrations? Read the MATIC price analysis to find out.

Polygon price technical analysis: Weekly chart

Polygon/Matic weekly chart 1 December 2022 – Source: Capital.com

MATIC’s price has been attempting to form a higher low at $0.68. A few weeks back, the bulls tried to push the price above the 50-week simple moving average (SMA) but the bears held their ground. Hence, this becomes the key level to watch out for on the upside.

The flattish 20-week exponential moving average (EMA) and the relative strength index (RSI) near the midpoint, suggest a balance between supply and demand. Buyers will have to drive the price above $1.30 to gain the upper hand. If they do that, the MATIC/USD pair could rally to $1.73.

Contrary to this assumption, if the price turns down from the 50-week SMA, it will suggest that bears continue to sell on rallies. The bears will then make another attempt to sink the price below the strong support at $0.68.

A break and close below this level could indicate advantage to bears. The pair could then drop toward the psychological support at $0.50 and later retest the June low at $0.31.

Polygon price technical analysis: Daily chart

Polygon/Matic daily chart 1 December 2022 – Source: Capital.com

Polygon’s price surged above the moving averages on 30 November, indicating that buyers are attempting to gain the upper hand. The bulls will now try to drive the price above $1 and extend the recovery to $1.30.

However, the bears are likely to have other plans. They are trying to pull the price back below the moving averages. If they do that, it will suggest that bears continue to sell on rallies.

That could pull the price down toward $0.80 and then to $0.76. A bounce off this support could keep the pair range-bound between $0.76 and $0.97 for some time. The flattish moving averages and the RSI near the midpoint also suggest a consolidation in the near term.

Polygon: Buy or sell this week?

Polygon has risen above the moving averages and the bulls will try to extend the rally above the psychological level of $1. If that happens, polygon’s price analysis suggests a rally to $1.30 may be on the cards. Conversely, if the price drops below the 20-day EMA, the pair could decline to $0.76.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.

Markets in this article

MATIC/USD
POL/USD
0.47659 USD

-0.00116 -0.240%

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