MATIC Price Stalls In Range: Could It See A Breakout Rally Next?

• MATIC price hovers in a congestion zone and is looking for a breakout.
• Polygon’s $1.06B TVL drop signaled ecosystem liquidity challenges.

Polygon (MATIC) has spent the last three weeks trading in a tight range of $0.47 to $0.42. The coin was positioned for a directional move, and a bullish breakout over $0.50 might signal an upswing.

At press time, the MATIC price was trading at $0.4733, and a rise of over 4.30% in the past 24 hours was noted. Its market cap rose to $905.80 Million, ranking 106th in the overall crypto market.

January began with a negative tone for Polygon Crypto, which was rejected by the 100-day EMA mark. That led it to plummet by nearly 18% during the month’s first week. However, it later recovered and retained some of the recent losses.

Polygon’s Price Action Hints at a Potential 40% Jump: Here’s the Outlook

The MATIC price action indicated a sideways movement, and the Bollinger band was squeezed. This signaled a sharp directional move in the near sessions. Additionally, it continued to face selling pressure and dragged inside a descending triangle pattern.

As of writing, the Polygon price was aiming to breach the trendline of the pattern. Additionally, the token is looking for a swift upmove ahead.

With low trading volume, the MATIC price faced uncertainty and a lack of accumulation by participants. A bounce above $0.50 may fuel bullish momentum and could reach $0.56 and $0.68. A 40% upside hit at such levels would make it possible to escape the range-bound territory.

However, a drop below $0.40 could open the downside risk to $0.32 and $0.25. Increased competition from other Layer 2 solutions put bearish pressures in place. With this, the transaction volumes declined to 3 million per day.

Polygon’s TVL Activity Signals Strength Despite Price Decline

With a Total Value Locked (TVL) of $1.06 Billion, Polygon puts it among the top 10 blockchains. Although it has been reduced by 6.37%, it was still relatively higher than chains such as Avalanche and Aptos.

Despite the recent market turmoil, Polygon crypto remained in a range, thanks to its resilience. The network’s ongoing activity evidenced the same.

Polygon crypto’s strength is in its ecosystem and the several protocols that would help an ecosystem with such high staking levels. Despite a modest drop in TVL, the network remains one of the most popular projects in the decentralized finance area.

Polygon Price Analysis: Is MATIC Ready for a Big Directional Move?

Amidst the bullish sentiment across the crypto market, Polygon crypto could gear an upmove and escape from a narrow range. At press time, the MATIC price stayed below the key EMAs. Also, it was attempting to sustain above the 100-day EMA mark for a trend reversal.

Once MATIC bulls succeed in crossing $0.50 resistance, a reversal could be seen in the short term. The immediate support zones were $0.40 and $0.36, whereas the upside hurdles were $0.55 and $0.68.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.