- MATIC is making another attempt to break above the $0.43 level
- Aave teams with Polygon to Bypass Ethereum Congestion
Polygon (MATIC) posted an aggressive spike towards fresh highs of $0.425 on April 13. MATIC is making another attempt to break above the $0.43 level, a tough obstacle for its price action since March 19. The MATIC/USD pair remains in consolidation after the correction from the March 11 all-time highs of $0.54. However, momentum indicators in the daily chart currently support that positive momentum is likely to strengthen in the short term. Specifically, the RSI is gradually picking up speed above the mid 50 reading.
MATIC recently announced a rebrand to Polygon, Ethereum’s Internet of Blockchains. Polygon aims to enable Ethereum to become a full-fledged, powerful multi-chain system. Polygon (MATIC) has a current market cap of $1.97 billion, with $256 million in trade volume over the past 24 hours. As of press time, MATIC was trading at $0.40, up 15.10%in the last 24 hours and 3.63% weekly.
In another update, Aave will be exploring scalable sidechains with Polygon (formerly known as Matic) to escape the high transaction fees that presently exist on the ETH network. Besides creating a sidechain that allows fast and nearly free transactions, Polygon’s ecosystem of apps includes community favorites Aavegotchi and decentralized exchange QuickSwap.
Polygon (MATIC/USD) daily chart: Ranging
MATIC is approaching the spike that it posted on March 29, reaching intraday highs of $0.425. The MATIC/USD bounced off the support around $0.34 on Apr.13 to fight the tough wall near $0.43 on the daily chart, which has been a crucial obstacle to upside movements since Mar.20. MATIC remains in consolidation if its price action remains pinned below $0.45. Should the price move higher again, MATIC bulls could extend the upward climb towards the earlier mentioned resistance at $0.43 before the price makes a further move to the $0.4505 and $0.51 resistances.
Once the price jumps above the $0.51 level, the expectation is a retest of the record peak at $0.54 before moving into uncharted paths.
On the other hand, a decline could meet immediate support at $0.34 ahead of the MA 50 at $0.319, which the market was unable to break over the last few sessions. If the MA 50 fails to support the pair, the MATIC price could return lower to the support range between $0.272 – $0.305. If the decline is not halted at $0.272, the MATIC/USD pair could drop back to $0.1876.
- Supply Levels: $0.544, $0.454, $429
- Demand Levels: $0.350, $0.291, $0.271
To summarize, the short-term bias remains neutral to bullish. A sustained break out of the consolidation range below $0.45 is necessary for the upward climb to progress.
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