By Nathan Ferguson
MATIC sees its price stabilizing after the dominant downtrends for over three months from the token’s high at $2.91. The move offers long-term investors and swing trade an accumulation opportunity to get MATIC at discounted prices before the alt reverses the trend to embark on exponential uptrends.
Polygon Calms before an Exponential Storm
MATIC price saw a staggering 55% slump over the past three months from the $2.92 all-time peak. That downward move emerged amid the crypto market trend-shift as BTC price crashed from 69K highs to the lows near $33K.
MATIC and other alts mimicked Bitcoin, recording colossal turnarounds. Nevertheless, Polygon seemed to seal the bloodbath near the support floor for $1.30. The alt has tagged this support barrier several times since the initial retest on January 22. Meanwhile, this floor has acted as a steady support on all occasions, attracting sidelined buyers to brace MATIC’s market value.
Polygon price erased the gains acquired during March’s 30% upsurge before gaining some traction to retest the mentioned support level. Nevertheless, the alt appears to form a base as it readies for more surges.
According to the price chart, MATIC’s projected trajectory attempts to predict the upcoming price action development. Buyers and sellers have a higher grappling probability, translating to sideways action, eventually triggering explosive moves.
The resulting upside will encounter the nearest resistance zone at $1.94, following a 40% surge. Adequate bullish strength would see the altcoin flipping this obstacle into a foothold, attracting more buyers to the marketplace.
Such cases would likely see Polygon extending higher to retest the ATHs at $2.92. This leg-up would see the crypto forming a rounded bottom, indicating a trend shift in the bulls’ favor. That will translate to a 100% total gain and likely where Polygon would witness substantial profit-booking. Therefore, leading to sideways action or brief retracements.
The active deposit index supports the massive and attainable MATIC’s upward trend. This on-chain metric measures incoming centralized network deposits, and analysts can use it to determine possible profit-booking regions and local tops formation.
Polygon’s active deposit sustained a downtrend since May last year, falling to 94 from 1291. The massive downswing shows investors aren’t fascinated by selling are may hold the alt, adding credence to the bullish narrative clarified from a technical viewpoint.
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