- MATIC’s bullish prospects improve as it approaches short-term support.
- A cloud of uncertainty still clouds MATIC as investors are unsure of the next market direction.
MATIC bulls have struggled to maintain dominance since mid-February. It has since lost roughly half of the gains it achieved since the start of 2023 but the bulls might have a chance at redemption.
Is your portfolio green? Check out the Polygon Profit Calculator
MATIC maintained the same bearish theme in the second half of April. However, there was one key observation that suggested that the bulls might be about to execute another attempt at redeeming themselves.
MATIC’s price recently extended its downside and has been consolidating near the $0.95 price level.
Source: Santiment
MATIC previously retested the same support level during the last week of April. This was followed by a short-lived weak and bullish attempt, and the token was headed for another support retest. Meanwhile, the token’s money flow revealed that the outflows slowed down and may potentially be pivoting.
A bullish order in the works?
MATIC will have to sum up enough inflows in order for the bulls to regain their momentum. Its on-chain metrics revealed that the overall market sentiment improved slightly in the last few days. Nevertheless, it didn’t necessarily indicate robust confidence among investors, likely because there was still a lot of uncertainty in the market.
Source: Santiment
Furthermore, MATIC’s volume revealed a bit of stimulation after the slowdown observed in the last few days. However, volumes still remained low, hence there stood a chance that MATIC may push below the current support level.
There was also one particular observation that may offer some reprieve for MATIC holders. Its mean coin age registered an overall upside in the last seven days. This confirmed the slowdown in sell pressure during the same period.
Source: Santiment
MATIC’s transaction count has also slowed down in the last few days. This outcome can be interpreted as a slowdown in sell pressure as the price approached the short-term support line. While these on-chain observations support a higher likelihood that the support will hold, there was another macro factor that may seal the deal.
Realistic or not, here’s Polygon’s market cap in BTC’s terms
Global payment processor MasterCard recently announced partnerships with multiple blockchain networks. Polygon is among the blockchain networks that will be part of MasterCard’s plan for blockchain adoption.
The market may not have reacted immediately to the MasterCard news but it may trigger renewed confidence among investors once the market conditions are aligned.
MATIC’s price action has been moving in tandem with the rest of the market. Nevertheless, the prospects of a collaboration with a global payments processor may pave the way for more real-world utility and growth.
Credit: Source link
