Amid the turbulent crypto market outlook, altcoins like Polygon (MATIC) have struggled to gain traction. However, recently, MATIC found some footing. This pause in the downward momentum could signal that a reversal is on the horizon.
With Polygon (MATIC) attempting to stage a recovery, investors wonder if it can reach the $2 level in 2024. This analysis will explore factors that could help or limit MATIC’s recovery in the coming days.
MATIC Found Support Amid Bearish Trend
The price of Polygon’s MATIC coin has fluctuated significantly in the last month. In early July, the token slipped into a bearish trend.
On July 3, MATIC dropped from $0.56 to $0.43, marking a 23.21% decline. However, the selling pressure was short-lived, as buyers entered the market on July 6.
MATIC quickly rose to $0.55, a 27.91% increase from the previous low. The price stabilized within this range for a while before plummeting to $0.477 on July 25.
This downward move was followed by an even more severe drop, with MATIC dumping to $0.34 on August 5, a 28.71% decrease. Interestingly, as of August 8, MATIC is back above the $0.40 mark.
MATIC hovers around $0.406, representing a slight drop of 1.40% from the previous close.
MATIC Price Analysis
MATIC’s current position at the lower end of the Bollinger Band suggests the coin is trading in a bearish zone. Moreover, the MACD is below its signal line. The SuperTrend indicator flashes a sell signal, implying a continued downward trend for MATIC.
The Relative Strength Index (RSI) around 30 suggests MATIC is oversold, aligning with the bearish analysis.
In addition, the coin currently trades below the 200-day and 50-day SMA lines, indicating strong bearish momentum. These critical levels could act as resistance, preventing prices from increasing.
Lastly, the bearish volume indicator further supports the overall pessimistic outlook for MATIC.
Can MATIC Reach $2?
MATIC is currently trading within a bearish channel, and to reach the $2 target, the coin must first break out of this pattern. The chart shows that MATIC has been within this channel since early June, and a breakout above this pattern will signal bullish pressure.
However, failure to sustain the current level could lead to a further price drop below $0.30. Based on the technical analysis, the MATIC token is in a bearish state.
Investors should wait for a potential break out before deciding whether to enter.
Bearish Signals Loom for MATIC as Traders Rush to Offload the Token
The recent market data for Polygon’s MATIC token suggests a growing bearish sentiment among traders. According to Coinglass, on August 6, about $371,000 million in short positions were liquidated, with only $89,000 in long liquidations.
This imbalance indicates that traders anticipated further declines in the token’s price and were actively positioning themselves to capitalize on the expected downward movement.
Further evidence of the bearish sentiment can be seen in the MATIC exchange outflow data from CryptoQuant. The net flow data shows that outflows surpassed inflows. In total, traders offloaded more than 13 million tokens.
This suggests that investors were becoming increasingly wary of MATIC’s prospects. They probably wanted to cut their losses or reallocate their funds to more promising investments.
With traders actively positioning themselves for further declines and the outflow of tokens from exchanges, the downward pressure on MATIC is expected to intensify.
The technical analysis and market data suggest that MATIC’s bearish outlook is well-founded. Therefore, apply proper risk strategies before buying the asset.
Discover the Next Big Thing in Meme Coins: The Meme Games
As the crypto market navigates through volatility, investors are closely monitoring The Meme Games (MGMES). The Meme Games is a meme-inspired cryptocurrency with a unique spin on the traditional meme coin concept.
Its unique concept is gaining significant traction among investors. Consequently, the project has raised more than $340,000.
The Meme Games – A Unique Blend of Memes and Sports
The Meme Games offers a new approach to meme coins by incorporating the excitement of sports-themed competitions. Imagine your favorite meme characters racing against each other.
Users can also choose the “athlete” they believe will emerge victorious. Through the power of blockchain, the winning meme is randomly selected, and the winners are rewarded with MGMES tokens.
Moreover, the staking app offers an impressive 630% annual yield. Currently, over 16 million MGMES have been staked.
Unlike most meme coins, The Meme Games has a solid foundation to support its plans. The project has already undergone a SolidProof audit.
With a clear roadmap, strategic token allocation, and a commitment to ongoing development, The Meme Games stands out from the countless meme coins in the market.
The community is enthusiastic as the project plans its DEX listing on September 10. Moreover, some analysts are even predicting a potential “100x” price surge upon market debut.
To enjoy early rewards, investors must join the presale to purchase MGMES tokens, which are available for just $0.0092 each. However, this price won’t last long as the presale progresses.
Visit the The Meme Games presale website and secure your MGMES tokens today.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
