The cryptocurrency market is experiencing a dip amid near-term profit-taking. The majority of tokens including Polygon (MATIC) were seen trading in the red as investors pulled gains. At the time of writing, MATIC was exchanging hands at $1.479, down 9% on the day. Ranking 17th largest, Polygon’s market valuation stands at $9.91 billion with a 24-hour trading volume of $859 million. The ”Magician”, Leo Messi’s NFT drop powered by Polygon goes live on Ethernity chain, a digital platform that produces licensed and authenticated NFTs. Polygon is seeing developmental growth as it recently announced a collaboration with Filecoin. Data from any Polygon address owner would be stored by the Open file folder, textile’s Filecoin-Polygon Storage, thus accelerating the Web3 interoperability between Polygon & Filecoin ecosystems.
Key Levels
Resistance Levels: $2.43, $2.00, $1.70
Support Levels: $1.27, $1.00, $0.62
MATIC/USD Daily ChartIn the past few weeks, MATIC/USD gained momentum above the $0.62 July 20 floor to reach highs last seen since Mid June. Recently, MATIC posted five consecutive days in the green to reach $1.70 highs on Aug. 23. However, MATIC suffered a near-term correction on Aug 24. as Traders took profit from the five-day rally, pushing lower to $1.432.
Current easing could be seen as positioning for fresh upside, with extended dips expected to find ground near $1.41 and $1.27 levels ahead of the MA 50 ($1.12) barrier now reverted to support to keep bulls in play. Pullback so far looks like corrective action as the RSI hovers around the 60 marks. Fresh upside action requires a sustained break above the $1.70 resistance confirmed since Mid June to generate a bullish signal for a recovery towards $1.98, $2.43, and then the $2.82 all-time highs.
MATIC/USD 4-Hour ChartAs seen on the 4-hour chart, MATIC retreated from recent highs amid profit-taking. However, the bears have so far been unable to push the price below the $1.43 mark as bulls rose to the rescue. In case of further declines, the first line of support may be found at $1.273 and the MA 200, currently at $1.21. A decisive break below that area would turn the picture to a negative one, and open the door for a test of the $1 psychological handle.
On the flip side, a rebound in the market may encounter immediate resistance near the MA 50 support now turned barrier at $1.50, with an upside break paving the way for a retest of the $1.70 high ahead of the $2 range. Overall, the technical oscillators are transmitting mixed directional momentum, howbeit as long as this latest decline remains limited above the $1.436 low, it might be treated as a corrective phase.
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