Polygon Price Makes Bullish Reversal From $0.55 Amid SEC Trouble! Here’s Next MATIC Price Move – NewsTo
Polygon Price Makes Bullish Reversal From $0.55 Amid SEC Trouble! Here’s Next MATIC Price Move

Polygon Price Makes Bullish Reversal From $0.55 Amid SEC Trouble! Here’s Next MATIC Price Move

A specter of uncertainty enveloped the crypto world when the SEC designated MATIC, Polygon’s native token, an ‘unregistered security,’ triggering a wave of panic selling. The tremors were keenly felt as prominent exchanges like Robinhood and Baakt declared they would delist Polygon. Yet, amidst this tumult, something unexpected emerged. Despite the negative air surrounding Polygon, a significant surge in whale activity is now being observed. This sudden influx of high-value transactions is steering the MATIC price away from its recent low at $0.55, highlighting a bullish reversal that defies the odds.

Whales Are Waiting For A Big Move Ahead 

The increased regulatory pressure from the U.S. has visibly rattled some whales, as evidenced by the surge in transactions of over $1 million in recent days. However, despite heightened whale activity, there wasn’t a significant upward price swing. 

In the same timeframe, the supply of MATIC on exchanges – a metric indicative of short-term selling pressure – exhibited rapid fluctuations. It sharply increased, decreased, and then spiked once more before tapering off. This suggests that MATIC’s selling pressure persists, largely due to the prevailing regulatory uncertainties.

Additionally, Polygon’s Network Valuation to Transaction Volume (NVT) ratio has experienced a significant surge, hinting at potential bearish trends for MATIC’s price. The NVT ratio juxtaposes a network’s market value with the volume of transactions using its native token.

As per the Glassnode chart, the MATIC NVT ratio has been on an upward trajectory since June 10th. From June 10th to June 15th, it witnessed an impressive rise of nearly 420%, increasing from 15.79 to 84.56. 

The NVT ratio evaluates the correlation between a cryptocurrency’s market cap and its transaction activity. A rising ratio, as seen here, signifies that MATIC is currently overpriced.

What To Expect From MATIC Price Next? 

Recently Polygon made a slight bearish candle below $0.6 as it faced a continuous rejection above the EMA20 trendline. However, after forming a low near $0.55, MATIC’s price gained bullish confidence and initiated a recovery to $0.6. Buyers are currently capitalizing on this dip, initiating a potential recovery that could encounter substantial resistance at the previous $0.67 breakdown level. As of writing, MATIC’s price trades at $0.572, dropping over 4% in the last 24 hours. 

If the price witnesses a sudden downward correction and drops below $0.54, it would suggest a bearish shift, with the level of $0.55 turning into a resistance point, possibly leading to a retest of the $0.5 support level.

On the other hand, if the bulls manage to push the price above $0.67, the MATIC price might aim for the 100-day EMA at $0.72. A successful breach of this level would signal a weakening bearish hold. Consequently, the Polygon price could then strive for a rally towards $1.

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