The MATIC token’s price faces a hurdle near its crucial resistance level, raising concerns regarding its continuation of a bullish rally.

Polygon investors enjoyed this month as their native MATIC token saw an overwhelming price boost since the start of the new year. The MATIC price has generated an ROI of over 40% in just two weeks, sparking bullish expectations among traders after a prolonged downtrend.

Furthermore, several analysts believe that the MATIC price will wow investors with a surprising breakout; on the other hand, some believe that the MATIC token may experience further selling pressure if it fails to keep its price near the resistance level, resulting in a downtrend.

Polygon Gets Support from the Community

The Polygon price has risen continuously, with a staggering 40% gain in January, making it a rising star in the altcoin market with the most significant gain. Additionally, altcoin traders turned their attention to the Polygon network, as it recently announced the entry of world leading investment firm Hamilton Lane.

According to the announcement, the NASDAQ-listed company with nearly $829 billion in assets under management (AUM) reveals its $2.1 billion funds in the Securitize platform, a Polygon-based tokenization vehicle. With this initiative from the Polygon network, the MATIC price is expected to push its cap higher and achieve its short-term bullish targets in February.

On-chain analyst firm Jarvis Labs noted that MATIC price funding rates remain neutral, with long positions seeing a significant increase over short positions, suggesting investors’ bet on long term earnings. Also, the number of addresses holding the MATIC token saw an increase in January, signifying strong interest from the crypto community.

MATIC Price May Kick off a Bearish Bloodbath

The MATIC price is awaiting a major test, as current market conditions, including the 25bps interest rate hike, may weaken investor confidence. However, the MATIC token appears to have less of an impact, as it continues its upward journey with large partnerships, including Mastercard.

At the time of writing, MATIC price is trading at $1.23, with an upward trend of more than 12% in the last 24 hours. A well-known altcoin trader, TradingStat, predicts that MATIC may prepare for a downside correction as it fluctuates near its fundamental resistance level at $1.27. The analyst claimed that a failure to trade above $1.27 could sink the MATIC token below the 31.8% Fibonacci retracement level at $1.12.

However, an uptrend above the resistance level may gain investor confidence by recording a new uptrend with intense buying pressure. A consolidation above $1.28 may see the MATIC token rise with a stable rise and form next resistance at $1.5.

By Audy Castaneda

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