Polygon price analysis 26 Nov: Will the $1.4 support crack?

Polygon (MATIC) may start a deeper correction

Polygon crypto currency digital payment system blockchain concept. Cryptocurrency isolated on earth night lights world map background.                                 
Polygon (MATIC) has been in the spotlight recently as a potential answer to high Ethereum gas fees – Photo: Shutterstock
                                

Polygon, a Layer-2 Ethereum scaling platform, has been in the limelight as investors look for solutions to the slow transaction speed and soaring gas fees that continue to bog down the Ethereum blockchain.

Polygon recently announced the launch of Polygon Miden, a Scalable Transparent ARguments of Knowledge (STARK)-based, Ethereum Virtual Machine (EVM)-compatible scaling solution, as well as the early prototype release of its core component, the Miden Virtual Machine (MIden VM). 

Sandeep Nailwal, co-founder and chief operation officer (COO) of Polygon, said that Miden VM could “contribute to the advancement of Polygon and Ethereum infrastructure, thus accelerating mass adoption of these technologies".  

In a recent Reddit talk hosted by r/CryptoCurrency, Kevin O’Leary of Shark Tank fame said he liked Solana and Polygon. He went on to add that he has met the teams and liked what they were doing.

In other positive news, the US National Football League (NFL) launched a pilot programme in partnership with Ticketmaster to distribute so-called “virtual commemorative tickets” for select games. The tickets will be sent as non-fungible tokens (NFTs) to eligible Ticketmaster wallets. The first set of commemorative NFTs through Ticketmaster and Polygon was released on 18 November.

Nexo announced on 23 November that it will add support to Polygon’s MATIC token and investors will be able to earn up to 20% interest on the platform as part of the current promotional campaign. 

Could MATIC go up following the recent announcements? Read the MATIC price analysis to find out what the charts suggest.

Polygon (MATIC) price technical analysis: weekly chart

Polygon (MATIC) technical analysis weekly chart
Polygon (MATIC) price technical analysis: weekly chart – Credit: Currency.com

MATIC’s price has been trading inside an ascending channel pattern for the past few weeks. The price recently turned down from the resistance line of the channel, indicating that bears continue to sell at higher levels.

The MATIC/USD pair could now drop to the support line of the channel. This is an important level for the bulls to defend, because a break and close below the channel could signal the start of a deeper correction.

The pair could first drop to $1.11; if this support is breached, the decline could next extend to the critical level of $0.80. Such a move will increase the possibility of a bearish double-top formation.

Conversely, if the price turns up from the current level or bounces off the support line of the channel, the bulls will again try to resume the uptrend. A break and close above the channel could signal the start of the next leg of the uptrend to $2.28 and then to $2.92.

Polygon (MATIC) price technical analysis: daily chart

Polygon (MATIC) technical analysis daily chart
Polygon (MATIC) price technical analysis: daily chart – Credit: Currency.com

MATIC’s price has bounced from close to the support line of the channel, but the rebound could not cross the psychological resistance at $2. This indicates that traders may be booking profits on relief rallies.

The bears will now try to sink the price below the support line of the channel. If they manage to do that, it will signal a possible trend change. The pair could then start a deeper correction.

Conversely, if the pair rebounds off the support line of the channel, the bulls will again try to drive the price above $2. Such a move could open the doors for a possible rally to the resistance line where the bears are expected to sell aggressively.

If the price turns down from this resistance, the pair could continue to trade inside the channel. But a break and close above the channel will signal a pick-up in the bullish momentum.

Polygon: Buy or sell at current levels?

Polygon’s price analysis shows the pair is trading inside an ascending channel, but the bears are selling on rallies to the $2 resistance. A break below the channel could signal a possible trend change, while a break above $2 could propel the pair to $2.28.

Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.

Further reading

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