Polygon (MATIC) has been trading sideways for the past few days, waiting for the altcoin to escape consolidation.
However, the view is that MATIC investors may end up waiting even longer, given the large-scale resistance holding back the recovery.
Polygon watches for signs of weakness
MATIC’s price is testing the upper and lower limits of the range it has been stuck with for some time. The relative strength index is in the bearish zone, so broader market cues are not necessarily helpful for the altcoin.
RSI is a momentum oscillator used to measure the speed and change of price movements. Values range from 0 to 100 and are typically used to identify overbought or oversold conditions in the market.
The Polygon native token is not oversold at the moment, but it is below the neutral line at 50.0, making it a significant bear market.
However, even if MATIC witnesses bullish signs, it could run into resistance from investors. According to the Global In/Out of the Money (GIOM) indicator, about 1.05 billion MATIC worth $735 million was purchased at $0.71 to $0.77 and is awaiting profit.
Given that the consolidation cap is $0.74, MATIC will need to rise further to profit from this supply.
Read more: How to buy Polygon (MATIC) and everything you need to know
Otherwise the altcoin may remain consolidated and that is a possible outcome.
MATIC Price Prediction: Card Decline
MATIC price was trading at $0.70 but failed, breaking the $0.74 resistance for the fourth time in the past three weeks. As mentioned above, given that the altcoin is facing considerable resistance, we could likely see another drawdown.
This could cause MATIC to point to consolidation in the coming days and drop to the support at $0.64. However, if the bears strengthen, MATIC price could break through this support and drop to the lows of $0.60.
Read more: Polygon (MATIC) Price Prediction 2024/2025/2030
On the other hand, if the wind turns bullish, MATIC’s price may escape consolidation. This allows MATIC to aim to secure $0.80 as support.
As a result, a supply of 1.05 billion MATIC will also benefit. As a result, the bearish thesis may be invalidated and prices may rise further.
Disclaimer
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