Polygon’s MATIC remains trapped by resistance but is the price bearish?
Polygon is a Layer-2 scaling solution on the Ethereum network
The native token has been surging on the back of positive developments
The token is yet to break past a key resistance but remains bullish
Polygon MATIC/USD remains one of the most popular Layer-2 solutions on Ethereum. That raised speculations that Polygon would benefit from the upcoming Ethereum move to PoS. MATIC, the native token, has been surging lately. The token trades at $0.96, up from a low of $0.33 in mid-June.
The utility of MATIC has also been growing, also fueling its surge. One notable development is the selection of Polygon for Disney’s accelerator program. Polygon was also a key beneficiary of the failed Terra network. The blockchain attracted at least 40 projects from the Terra network. The developments show the trust that Polygon enjoys that will continue to drive MATIC.
To an investor, MATIC’s price movement makes key levels important to watch. That takes into account that the bullish momentum is weak, but the cryptocurrency holds previous gains.
MATIC rejected at resistance as price surge cools
Source – TradingView
The crossover of the MACD line below the moving average points to a correction of MATIC. The token was rejected at the $1.02 resistance. The resistance is the highest price attained since early May. The price remains supported by the 21-day and 50-day moving averages. MATIC has also maintained the uptrend.
Concluding thoughts
$1.02 is the key level to watch for MATIC buyers. The price needs to breach the resistance zone for buyers to enjoy a lasting bullish momentum. If that does not happen, MATIC will be vulnerable and continue to consolidate or slide. At the moment, investors should keep calm and wait for a potential breakout.
