Polygon MATIC price analysis: Could Merge lift price over $1.05?
Polygon could remain range-bound in the near term
- Polygon price technical analysis: Weekly chart
- Polygon price technical analysis: Daily chart
- Polygon: Buy or sell this week?
The crypto community will be closely watching the Ethereum’s Merge which is likely to happen on 15 September, according to bordel.wtf. Could this event be positive or negative for Layer 2 solutions such as Polygon? This uncertainty could be one of the reasons that is keeping Polygon inside a range. The bulls are attempting to push the price above $0.90 as of 2 September 2022.
The Polygon team addressed the effect of Ethereum’s Merge on Polygon in a recent blog post. The team said they believed “the merge is only good news for Polygon.” They went on to add that as “Ethereum grows, Polygon should as well. Every improvement made to Ethereum, as a settlement layer, magnifies the power of Polygon.”
Polygon announced on 31 August that the popular trading application Robinhood launched support for deposits and withdrawals for MATIC on the Polygon blockchain. This partnership could increase the availability of MATIC to several new traders on the Robinhood trading app.
In other news, OpenSea, the most popular non-fungible token (NFT) marketplace by volume, announced the integration of Polygon into Seaport, the Web 3.0 marketplace protocol launched first on Ethereum. According to OpenSea, this move “makes it easier to ship new features faster and create a better experience for everyone.”
Could the positive announcements increase buying in MATIC? Could Polygon go up? Read the MATIC price analysis to find out.
Polygon price technical analysis: Weekly chart
MATIC’s price turned down from $1.05 but a positive sign is that the bulls are attempting to defend the immediate support at $0.75. This shows demand at lower levels. The buyers are trying to push the MATIC/USD pair above the 20-week exponential moving average (EMA).
If they succeed, the pair could once again rally to the overhead resistance at $1.05. The bulls will have to clear this hurdle to open the doors for a possible rally to the 50-week simple moving average (SMA).
Another possibility is that the price once again turns down from $1.05. If that happens, the pair could remain range-bound between $1.05 and $0.75 for a few weeks.
What is your sentiment on MATIC/USD?
The flat 20-week EMA and the relative strength index (RSI) just below the midpoint, also suggests a consolidation in the near term. This view will invalidate if the price turns down and plummets below $0.75.
Polygon price technical analysis: Daily chart
MATIC’s price turned down from the 20-day EMA on 26 August and again on 28 August but the bears could not pull the pair below the strong support at $0.75. This started a recovery and buyers pushed the price above the moving averages on 1 September.
This has pushed the RSI into positive territory, indicating a minor advantage to buyers. If the price sustains above the 20-day EMA, the likelihood of a rally to $1.05 increases. The buyers are expected to mount a strong defence of this level.
If the price fails to sustain above the moving averages, it will suggest that bears are active at higher levels. That could pull the price down to the crucial support at $0.75. If this level gives way, the pair could start a deeper correction to $0.52.
Polygon: Buy or sell this week?
Polygon has broken above the moving averages on the daily chart and could continue its rise to $1.05. Contrary to this assumption, if the pair turns down and breaks below the 20-day EMA, Polygon's price analysis suggests a drop to $0.75. The next trending move could start on a break above $1 or below $0.75.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.