Polygon (MATIC) Nearing A Critical Demand Zone Around $1.68
Polygon’s (MATIC) price went out from its stagnation period that it entered since it peaked at the end of October and now exchanges hands at around $1.70, bearish on the day.
After the crypto hit a high at around $2.22, the price action had been favoring to a rangebound that had been setting the tone for the short term, although no clear signs of what’s coming up were defined until now.
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Latest Developments On Polygon Ecosystem
From a fundamental perspective, Polygon’s project is standing as a groundbreaker and even as a promising one, with a solid blockchain with ongoing updates on its multi-chain ecosystem. Recently, the team behind Polygon announced that Idle’s protocol was live on their blockchain, complementing their B2B program.
Recently, Wormhole, a generic cross-chain messaging protocol, was announced as a forthcoming addition to Polygon, which bolsters the tokenization, gaming, and the NFT fronts of the blockchain project across the board.
1/2 🙌 @wormholecrypto is coming to #Polygon
🤩 Wormhole, the generic cross-chain messaging protocol, launches a bridge to Polygon that will seamlessly connect tokens and #NFTs to Wormhole’s existing network!
🌐 Experience now: https://t.co/Lfv4UvpBjK pic.twitter.com/F79juUUwQt
— Polygon | $MATIC – We're hiring! (@0xPolygon) November 9, 2021
That said, Polygon remains unstoppable in developing its ecosystem, which is why the price of the token keeps rising in the broad picture.
Picking Up Buying Demand At $1.68?
Now, in the technical outlook, things change from a short-term point of view. First, as MATIC is declining and nearing the 200-period simple moving average at the H4 chart, the price is expected to consolidate at that zone because of the demand provided by the Fibonacci retracement level of 50% around $1.68.
If a rebound materializes around that zone, MATIC could pick up momentum and eventually rally towards the $2.20 zone in a first degree, given that the cryptocurrency keeps a bullish outlook from the broad picture. After clearing out that level, eyes will be on the critical handle of $3.00.
However, on the downside, if MATIC gets hit by the sellers and consolidates below the 200 SMA, the coin could plummet towards the Fibonacci retracement level of 78.6% at $1.38, followed by the $1.15 area.
As of press time, the RSI indicator is heading back to the oversold territory, calling for a possible bottom at this stage and favoring a possible rebound.