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MATIC Faces Resistance Amid Market Struggles: Can It Overcome the $0.73 Barrier?

Polygon’s MATIC has recently painted a complex picture on the market’s canvas, revealing signs of seller fatigue yet facing a tough challenge ahead. As of the latest data, MATIC is trading at $0.7020, witnessing a substantial 21,06% decline over the past week. Despite this downturn, some metrics suggest a possible price recovery might be on the horizon.

Source: TradingView

MATIC’s journey in the cryptocurrency market centers around its significant struggle to overcome the critical resistance mark of $0.73. A detailed analysis of the liquidation heatmap, which uses a color scale from purple to yellow to indicate the likelihood of liquidations, shows high liquidity at this price level. Here, open trading positions worth approximately $235,280 stand at risk of being liquidated, adding a layer of difficulty for MATIC to climb above this resistance.

Source: Image by Coinglass

Further insights from Coinglass highlight that the $0.73 zone poses a risk for current holders and serves as a formidable barrier that MATIC has yet to breach successfully. This price point has historically been a significant pivot for the token, often rebuffing its ascent.

On the technical side, recent attempts to overcome higher resistance levels were met with resistance from the market’s bears. Notably, on April 13 and again on April 15, MATIC aimed to surpass the $0.75 mark but was sharply repelled, underlining the strength of the opposing market forces.

From an on-chain perspective, the Market Value to Realized Value (MVRV) ratio suggests that MATIC is undervalued, sitting at 18.37%. Typically, such a low MVRV ratio precedes a market rebound, hinting that MATIC could see a resurgence if buying pressure increases. This scenario could potentially elevate the token’s price above $0.70 in the near term.

Source: Image by Santiment

However, indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) paint a mixed picture. The RSI is trending downward, suggesting bearish momentum, whereas the AO shows green histogram bars, indicating a possible slowdown in the downward trend.

Source: TradingView

MATIC’s immediate future appears to hinge on whether it can maintain support at $0.67 and potentially leverage any market recovery signals to break through the $0.73 threshold. If successful, the next target could be set around $0.85, offering a glimmer of hope to holders aiming for higher valuations. The days ahead would reveal if MATIC can turn these technical and on-chain analyses into a tangible upward trajectory.

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