Polygon (MATIC) hints at a double bottom reversal from crucial support following an intense correction wave. Is the underlying demand sufficient for the next distribution wave to hit $1?
With the altcoin bull market returning gradually, Polygon is preparing to overcome the bearish influence to restart the bull run. Despite a prevailing downfall for months, the altcoin at crucial support finds a trend reversal opportunity.
So, let’s take a look over the Polygon price analysis to find out if this is a worthy buy-the-dip opportunity.
Polygon Bullish Route from Channel’s Crossroad
Polygon attempts to come back after receiving a massive supply inflow since March 2024. The bulls anticipate a double-bottom reversal for a fresh recovery after hitting the $0.38 support.
However, the intense 68% collapse from its 52-week high of $1.29 reveals a massive bearish influence. Furthermore, the intense correction leads to a solid resistance trendline, maintaining a constant supply inflow.
As per the weekly RSI line, the two dips over the 1-week log price chart reveal a bullish divergence at play. This increases the chances of a bullish comeback in Polygon.
Currently, the MATIC price trades at $0.412, and with a 21% comeback, the weekly candle forms a long tail. Thus, with the growing demand at lower levels, Polygon signals a potential trend reversal.
Polygon Signals Bullish Momentum with Surging Network Activity
According to CryptoQuant, recent on-chain indicators in Polygon reveal a bullish trend with a surge in network activity over the past week.
Transfer volume has increased by 8.15% to hit 72 million MATIC. The number of active addresses has also jumped by 24.04% to 2,696, signaling increased user engagement. Additionally, transactions skyrocketed by 63.21% to 3,401. Essentially, the on-chain data reflects a massive uptick in Polygon network activity.
A Bullish Drive Chances for Polygon
Bulls are on overdrive with the growing underlying demand as market and network metrics see an uptick. Hence, the overhead trendline breakout will indicate a buying opportunity’s price action.
As per the Fibonacci levels, the uptrend in MATIC could reach the 23.60% Fibonacci level at $0.616. Optimistically, a broader market push could pump the altcoin to the $1 mark.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
