Polygon price has been consolidating for the past few days as Bitcoin continues to trade sideways. The native asset of the Polygon network has been trading between the tight range of $1.0850 and $1.1220 for the past few days. At the time of writing, MATIC was trading slightly lower at $1.0970. The altcoin currently ranks as the 9th largest cryptocurrency after Dogecoin and ahead of Solana.
Polygon price appears to have hit a roadblock at the $1.15 resistance level. MATIC has been trading below the aforementioned level in the past few days as several on-chain factors continue to weigh on its price.
First, the Polygon network has been recently experiencing a wave of profit-taking by whales. Despite the network’s recent upgrade, whales seem to remain pessimistic about the coin’s outlook. Data by Santiment shows that the number of crypto whales holding the altcoin has been in a sell-off frenzy since mid-February.
Second, MATIC’s recent overbought status imposed fresh bearish concerns among investors and holders. Polygons’ network announced the mainnet launch of its native zkEVM on March 27, a move that attracted investors and media attention, pumping the MATIC price higher. However, a week later, on-chain data suggested that investors were unconvinced that the launch would pose significant price gains.
Additionally, the recent sell-off in the Bitcoin price has also had a negative impact on the MATIC price. Bitcoin, the largest digital asset by market cap, has been consolidating for the past few weeks, slipping below its 10-month high. Being the largest cryptocurrency, Bitcoin’s performance largely contributes to the overall sentiment in the global crypto market.
Polygon Price Analysis
The daily chart shows that the Polygon price has been under intense pressure for the past few days. The altcoin has moved below the 25-day and 50-day moving averages, as well as the 50-day exponential moving average. Its Relative Strength Index (RSI) has slipped below the neutral zone.
Therefore, the Polygon price is likely to continue falling as sellers eye the next logical support level at $1.00. A flip above the important resistance level at $1.1580 will invalidate the bearish thesis.