- Polygon’s MATIC token has risen by more than 11% in the past five days.
- Now, the token appears to be forming a double bottom pattern.
- It must slice through $1.70 to advance to $2.10.
Share this article
Polygon’s MATIC token appears to be bottoming out after declining by more than 58% from its all-time high. Still, on-chain data shows a significant supply barrier ahead that may prove challenging to overcome.
Polygon Encounters Supply Wall
Polygon is approaching a critical area of resistance that could determine where it heads next.
Track live crypto price of 10000+ coins!
The Ethereum scaling solution’s MATIC token has risen by more than 11% over the past five days as it appears to be developing an Adam & Eve double bottom pattern on its four-hour chart. This technical formation is considered a bullish reversal pattern. It developed after Polygon dropped to $1.24 on Feb. 24 to form a V-shaped valley, surged to $1.70 on Mar. 2, and pulled back again to form a rounded valley near the $1.32 level.
A spike in buying pressure that pushes MATIC above the middle peak of the Adam & Eve at $1.70 could signal the beginning of a new uptrend. If the asset did see a spike in demand, it could surge by nearly 26% to surpass $2.
Still, transaction history shows that the $1.70 resistance zone could prove challenging to break.
IntoTheBlock’s In/Out of the Money Around Price model reveals that more than 27,500 addresses have previously purchased over 3.41 billion MATIC at an average price of $1.72. In other words, MATIC has a large supply wall that may absorb some of the recent buying pressure and prevent it from advancing further.
Given the number of underwater holders at $1.71, MATIC needs a decisive four-hour candlestick close above resistance level to validate the bullish outlook.
Failing to overcome the $1.71 hurdle could result in investors selling their holdings to avoid significant losses. A potential increase in downward pressure could push prices to $1.50 or lower.
Disclosure: At the time of writing, the authors of this piece owned BTC and ETH.
A Guide to Yield Farming, Staking, and Liquidity Mining
Yield farming is arguably the most popular way to earn a return on crypto assets. Essentially, you can earn passive income by depositing crypto into a liquidity pool. You can think of these liquidity…
Sushi Launches Long-Awaited Trident DEX on Polygon
Decentralized exchange Sushi has released a beta version of its new Trident automated market maker on Polygon. Sushi touts Trident as a new framework for building and deploying AMMs. Sushi…
Polygon Experiences Hours-Long Outage
Polygon, one of Ethereum’s top scaling solutions, is experiencing an outage today, according to various announcements and updates. Outage Is Likely Due to Heimdall Bug Polygon is down. The project…
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: