May looks up at the Polygon (MATIC) price as it is seen in the green zone for two consecutive days. Polygon bulls have gained steam and momentum in the new month after bears have kept prices low since mid-February.
Despite Polygon’s numerous innovative partnerships and bullish news events, the native token remained bearish for most of Q1 2023. And BTC’s impressive price moves in April still weren’t enough to shake up Polygon bulls, as bears remained adamant and unmoved. However, Polygon (MATIC) bulls remain resilient in their new show of strength in May.
MATIC Price gets an exemption from bulls
Polygon (MATIC) bulls have shown resilience and pushed prices back after a major retracement that shook most cryptocurrencies following a change in investor market sentiment on the first day of May.
The cryptocurrency markets, which experienced a major rally in BTC price and some altcoins in April, faced bearish sentiment as the “Sell in May” story came in.
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Polygon (MATIC), which finished April bearish at $0.97, would drop further as it traded as low as $0.94 on its first day.
However, during yesterday’s trading session, Polygon (MATIC) rallied as bulls stepped in and pushed prices back.
According to Coinmarketcap facts, Polygon (MATIC) appears to be continuing the previous day’s price recovery in today’s trading session. At the time of writing, Polygon bulls are up 3% at a trading price of $0.98.
The trading volume of the layer 2 blockchain token is also up nearly 14% in the past 24 hours, which may indicate buying activity from Polygon investors.
The price of MATIC is currently trading below the 200-day exponential moving average, with bulls moving to test that area acting as immediate resistance.
A break above the 200-day exponential moving average (EMA), currently trending at $1,052, could cause Polygon bulls to push the price to the next available resistance.
Polygon MATIC seen trading below its 200 EMA on the daily timeframe | Source: MATICUSD on TradingView.com
Polygon Onchain Analysis
A close look at Polygon’s on-chain activity and metrics provides insight into the reasons behind the native token’s recent bullish price moves. Onchain data reports from CryptoQuant reveal that the MATIC exchange reserve is at a negative 0.46% in the last 24 hours.
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A low or negative foreign exchange reserve indicates reduced selling pressure of a digital asset, while a positive indicates increased selling pressure of an asset from holders and traders.
Polygon exchange mains power today is low compared to the 7-day average, which is also an indicator of MATIC’s low selling pressure on exchanges.
Featured image from Economic Times chart from TradingView.com