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08 Feb 2022

Polygon (MATIC) Forecast 02/08

Bitcoin has recently broken through various levels of resistance and was trading above $45k at the time of writing. This has resulted in significant gains for numerous coins in the altcoin ecosystem, including MATIC. In other news, Polygon raised $450 million in cash through the private sale of its token MATIC, backed by Sequoia Capital India, with each token priced at $2 at the time of sale.

The price looked to create a range (yellow) between $1.495 and $1.75 over the last few weeks. In the last two days, the price attempted to break through the range highs twice.

In doing so, MATIC established a marker at $1.758; a breach of this level, followed by a retest as support, signaled a successful bullish breakout for MATIC.

Since then, the price has skyrocketed to the $2 round-number resistance level. In the previous month, the $1.9-$2.05 range served as support before shifting to resistance as Bitcoin plummeted below the $39k mark. Bitcoin has been positive in recent days, but it now finds resistance near the $46k level.

MATIC surged above the $1.92 barrier, signaling a strong bullish development. A retest of this area as support in the coming hours/days appears to be a buying opportunity. At $1.84, there was also some support.

While Bitcoin has seen significant demand in recent days, it is feasible that it will drop back to the $42k or perhaps $39k range in search of buyers. This could result in a significant drop in the price of altcoins.

With the price around $2.07, the RSI established a bearish divergence on the hourly, and MATIC has witnessed some selling pressure in the hours afterwards. The RSI remained above neutral 50, and the market structure remained optimistic.

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This structure would be broken if the session closure fell below $1.75. This is an improbable scenario, considering the CDV has seen substantial buying volume in recent days.

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