The Polygon (MATIC) price momentum registered a positive shift over the last 24 hours. The altcoin gained close to 3%. Meanwhile, on the weekly chart, MATIC is yet to recover from its losses. The technical outlook depicted positive price action; however, the coin is still not out of the woods.
MATIC has to break past the immediate resistance zone and trade above the $1.30 mark for a significant period of time. The coin also formed a head and shoulder pattern, often connected to a downtrend.
In the shorter time frame, MATIC might act bullish before it again starts to drop its value. The $1.30 mark remains crucial for the coin, as the bulls have barely traded above that mark. Before the coin gets to the $1 mark, the technical outlook forecasts another drop for the coin. This fall could bring the MATIC price to $0.70. The coin traded at a 68% discount to its all-time high in 2021.
MATIC Price Analysis: One-Day Chart
Polygon (MATIC) was auctioned at $0.90 at press time. The altcoin has been struggling below $1, which has acted as a strong barrier for the altcoin. MATIC has established the $0.80 mark as the support line. The path to $1 will not be smooth for the MATIC price, as it has to encounter two other resistance levels of $0.92 and $0.97, respectively.
Losing the $0.90 price level will bring the MATIC price down to $0.80 and then to $0.70 before recovering again. The amount of MATIC traded in the last session was green, which signified that buyers attempted to return to the market.
Technical Analysis
Buyer interest started to return in small proportions on the one-day chart. The Relative Strength Index remained slightly above the half-line, indicating demand for the altcoin. MATIC is still undervalued.
Correspondingly, the MATIC price moved above the 20-Simple Moving Average line, which meant that the buyers were driving the price momentum in the market. The market outlook for MATIC indicates that the coin will soon fall below the 20-SMA line, bringing sellers into power.
A small rise in buyers has indicated an increase in capital outflow for MATIC. The Chaikin Money Flow was above the half-line, which meant that inflows exceeded outflows.
Moving Average Convergence Divergence indicates a reversal of momentum and trend. There was a bullish crossover, which was good news for buyers as that marked a buy signal for the altcoin. Only a move above $1 will stabilize buying strength over the long term.
Featured image from SimpleHold, Chart: TradingView.com