Will MATIC Bulls Go Over and Beyond to Push Above $0.53?
Like other assets in the market, Polygon (MATIC) struggled to register a notable hike in price. However, the token was able to erase some losses as bulls made a partial return to the market over the weekend.
The presence of bulls ensured that MATIC was able to maintain support at $0.53. Also, the lack of intense rejection drove MATIC to climb higher as it tapped $0.56 on August 28. Although MATIC had retraced at the time of writing, the Relative Strength Index (RSI) increased to 53.26.
MATIC to Target $0.57
The RSI hike implies that there is still a buying presence in the market, and sellers have taken over MATIC’s momentum. Should buying pressure increase, bulls increasing control may push the RSI toward 60.00. In turn, MATIC may also target $0.57 as its next stop.
However, traders may need to watch out for the Bollinger Bands (BB). At the time of writing, the BB indicated that MATIC’s volatility had diminished. Therefore, the token price movement may not significantly slide away from the $0.53 region.
Furthermore, the upper band of the BB briefly touched MATIC at $0.56, indicating that the token was overbought. But at press time, MATIC was no longer overbought, providing a potential pathway for the price to rise to $0.57.
Not the Time to Short MATIC
Another indicator backing a MATIC price increase is the Moving Average Convergence Divergence (MACD). At press time, the MACD was 0.0009. Also, the blue dynamic line had risen over the orange line.
When the blue line is above the orange line, it means that buyers are in control of the market. In addition, the positive MACD indicates that MATIC had a solid potential for an upward movement. Therefore, traders may need to desist from opening short MATIC positions.
If the MACD increases further, then short contracts may be liquidated and MATIC may confirm its rise toward $0.57. Like the MACD, the Money Flow Index (MFI) also indicated that buyers’ liquidity input has been impressive lately.
Typically, values of the MFI lower than 20 suggest an oversold condition. Conversely, values over 80 suggest an overbought market.
Thus, at 59.00, the MFI implies that the buying momentum of MATIC may not be overturned by sellers anytime soon.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.