Despite its struggles throughout 2023, Polgyon has raised eyebrows as it massively outperformed other top cryptos, increasing by over 14% in seven days.
Its recent performance has been pushed forward by several factors that improved its market sentiment. The most recent event was the SEC being denied to appeal the verdict in its case against Ripple Labs. This has helped MATIC since the crypto has suffered significantly since the SEC ruled it a security earlier this year.
Other factors include the release of Polygon zkEVM, Polygon ID Release 4, and its Uptrip Loyalty Program. Ultimately, the releases of new products and upgrades and a more promising regulatory outlook have been the reason for its recent pump. However, can this pump grow into a longer-term reversal?
Polygon Shows Strength on 4-Hour Chart 200-Day EMA and RSI
The recent Polgyon pump has propelled the price above the 200-day EMA on the 4-hour price chart. This is an early sign of a reversal, particularly if there is confluence with other indicators and time frames.
Looking at the RSI, we can see it is currently at the 53 level. This is neither oversold nor overbought, indicating potential for a bullish continuation. Adding to this, the RSI is in an uptrend, which is generally a positive sign.
With its current price at $0.57, the next potential resistance level for MATIC is $0.65, with a more significant resistance around $0.7.
The best way to determine the likelihood of a resistance breakout is by zooming out to the higher time frame. However, the daily chart below shows that MATIC remains bearish, with the 200-day EMA pointing downwards.
Yet, to make matters worse, the RSI shows that the asset is overbought, indicating a potential longer-term downside move.
With this in mind, the recent pump may be a bull trap, and MATIC may see further capitulation, potentially towards the physiologically important level of $0.5.
Trader SZ has been a strong proponent of shorting MATIC in recent months, predicting much of its recent downfall. However, the analyst recently tweeted the importance of its current level, highlighting that it is the macro mid-range, which could result in a drastic price move in either direction.
Meanwhile, TradingView Analyst Witsfulautomata has shared a popular trade idea predicting the price could drop to lows of around $0.2 based on a “redistribution” hypothesis.
Despite its pump, technical indicators and market sentiment point to a downtrend continuation for Polygon. This is because its recent price action has not created a higher time frame reversal confirmation.
As such, buying Polygon at its current level would break the cardinal trading rule of “never catch a falling knife.”
Market participants looking for high-potential cryptos should consider trending projects with stronger market sentiment. One is TG Casino, a new crypto casino with exclusive benefits and lucrative staking, currently undergoing a presale.
GambleFi Token TG Casino Raises Nears $400K With 1,084% Staking APY for Presale Investors
TG Casino is a fully licensed Telegram-based crypto casino that began a presale at the end of September. The project leverages the exploding crypto casino trend but provides added value by launching on Telegram, providing a convenient and anonymous gambling experience to Telegram’s one billion users.
Telegram has become a hotbed for crypto innovation, with projects like Unibot recently launching on the platform and then surging to massive market caps.
Since launching, the presale has already raised almost $400K, luring investors with exclusive benefits and generous staking rewards. The TG Casino staking pool currently offers a 1,084% annual percentage yield (APY).
The token also offers other benefits like exclusive rewards for presale investors, potential for capital appreciation, and the ability to become a “high roller” by investing over $5K. High rollers will receive even more rewards, including a rare NFT.
One of TG Casino’s most anticipated features is its buyback mechanism, which will use some of its revenue to repurchase $TGC tokens.60% of the tokens will be allocated to staking rewards (reducing the need for inflationary tokenomics to support staking), and 40% will be burned, increasing the token’s scarcity.
Furthermore, the added demand from the token buyback will help bolster its price. Therefore, provided the TG Casino platform is in high demand, its robust tokenomics could cause its price to pump. Investors understand this, which is why its presale is quickly selling out.
With that said, investors looking to buy $TGC at the best price must act fast.