Can Polygon’s Reband Provoke 46% Gains?

MATIC price surges with the rest of the market as Bitcoin price sentiment turns bullish. The Polygon community eagerly awaits the rebrand from MATIC to POL, becoming the native gas and staking token for the network. The price of MATIC increased by 7.2% to $0.4434 and 2.6% against Bitcoin. MATIC is on the verge of a 46% breakout, and signs indicate a high chance of this coming to pass.

Futures Traders are Pumping MATIC Price

Traders have hijacked the Bitcoin price spike and the hype around the token rebrand to push MATIC price higher. Data from Coinglass shows that MATIC traders are bullish on the asset since comparing the change in open interest (OI) and price reveals that they are opening Longs. 

The MATIC cumulative volume delta (CVD) also increased by 1.73% over the last 24 hours. Combined with the 5.67% increase in the OI, it’s a strong indicator that Long positions are being initiated, which is typically a bullish sign.

However, an analysis of on-chain data from Santiment shows the daily active addresses and transaction count for the Polygon network dropped to a yearly low, showing reduced demand from investors.

MATIC technical analysis reveals the asset has a high chance of breaking out from its current general downtrend ahead of September 4.

$0.46 is Crucial for MATIC Breakout

MATIC price is in a falling channel and is currently trading near the upper boundary, suggesting a critical juncture where a breakout could occur or the price could continue to follow the downtrend.

However, prior analysis of futures trading data shows there may be enough juice to push the asset over the edge into a break unless market conditions change.

MATIC will likely find resistance at the channel’s upper boundary at approximately $0.4631. A breakout above this level would suggest a potential reversal, which could transform into a short-term rally. Above the channel, the 0.5467 level, which aligns with the upper Bollinger Band, could be a significant resistance if a breakout occurs.

The Polygon price is currently testing the midline of the Bollinger Bands, and a sustained break above this could indicate a shift in momentum. Moreover, the bands are contracting, which usually precedes a period of higher volatility.

The Coppock Curve, which is used to identify long-term buying opportunities when it turns upwards from a deep negative value, is at -4.1552, indicating bearish momentum is still present but possibly waning.

If MATIC price fails to break above $0.4631, it may signal market weakness and continue the downward trend. In this scenario, traders might consider taking a short position with targets at $0.3850, $0.3400, and $0.2780.

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Evans Karanja

Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.