Polygon (MATIC) is in danger as technical indicators point to a short correction in the near term. The altcoin, backed by billionaire Mark Cuban, is poised to drop to The Tom DeMark (TD) Sequential indicator.
Polygon (MATIC) had the opportunity to recover to $1 during the rally
Polygon is poised for a pullback after significantly larger in market capitalization last month. Still, there is a large support area that will help protect its price. MATIC, the network’s native cryptocurrency, had an opportunity to rebound with the market last month. It rose more than 200 percent from $0.32 to $0.98. Then, on July 18, it briefly rose above this level. Given the importance of the rise, the altcoin is currently trading in the overbought zone.
Indicator gives sell signal for altcoin
Accurate predictions of the TD Sequential indicator cryptocoin.com You can find it from this article. Tom DeMark (TD) is giving a sell signal on the daily chart of MATIC. On the MATIC chart, 9 green candlesticks have formed, which will be 1 to 4 candles bearish. The sell signals became stronger as the current red two candlesticks started trading below the previous red candlestick.
MATIC technical analysis
However, MATIC is trading above a key support cluster represented at $0.77 by the Parabolic SAR, the 100-day moving average and the 78.6% Fibonacci retracement indicator. A daily candlestick near the bottom of this critical area of interest is causing an increase in bearish pressure. At the same time, it is potentially leading to a 22% correction from the $0.58 low to the 50-day moving average.
MATIC will need to surpass the July 18 high of $0.98 to invalidate the pessimistic outlook. Breaking this vital resistance level gives MATIC the strength to move forward to the 200-day moving average at $1.20.
What on-chain data says about altcoin
Currently, MATIC is at its best in about three months. Meanwhile, more than $40.77 million tokens are moving in profit. This momentum is beneficial for investors as more details of Polygon’s efforts emerge.
Meanwhile, Polygon ZK is getting compatible with Ethereum. ZKEVM allows developers to build on Polygon ZKEVM. Thus, any smart contract compatible with Ethereum is also used in Polygon ZKEVM. Polygon will thus have much lower cost and much higher speeds than Ethereum’s capabilities. While this is Polygon’s first game plan, the real question lies around the impact of this development.
