Polygon MATIC Continues Steady Above $1.07 Amidst Market Optimism

(MATIC) exhibits a rebound in the market, currently trading above the  $ 1.07 mark. After slipping below the key $1.00 benchmark, MATIC has significantly recovered, climbing above the immediate resistance level of $1.02. This uptick reflects a 4.40% increase over the last 24 hours and a notable trading volume of $407 million. The current market cap of MATIC stands at $10.56 billion, placing it at the 16th rank in market valuation, with a circulating supply nearing its 10 billion coin cap.

Investor caution seems to be the prevailing sentiment, as seen by the drop in daily transactional activity, declining from 408,000 to 314,000 addresses. This cautious approach is mirrored by a reduction in new Polygon wallet creations, hinting at potential investor hesitation.

Polygon (MATIC) Network Growth. Source: Santiment

Despite the price recovery, the reluctance of market participants to engage more robustly with MATIC could signal a guarded outlook toward the asset's near-term performance.

MATIC/USD Daily Chart Outlook: A Glimpse of Recovery Amid Volatility

On the daily chart, MATIC/USD shows signs of recovery as it trades at $1.0748, attempting to push through the recent market volatility. The Alligator indicator—comprising three smoothed moving averages—signals a possible end to the market's dormancy, as the lines begin to separate, indicating an emerging trend.

Currently, the price sits just above the green line (lips), suggesting that buyers are attempting to gain control. If this upward trend continues, the next resistance level MATIC might encounter is near $1.0746, where it has previously faced selling pressure. 

However, if the price falls back, it could retest the dynamic support around the $1.0290 area, as indicated by the Alligator's blue line (jaw). With the broader market still showing signs of indecision, MATIC's ability to hold above these key levels could be crucial in determining its position in the days to come.

MATIC/USD Sees Upward Trend on 4-Hour Chart as Bulls Aim Higher

In the latest 4-hour chart, MATIC/USD has been on a continued uptrend since opening the daily trading session at $1.023. The price movement has been notably positive, pushing past the short-term moving averages, with the 50 SMA now acting as support at around $1.0411. This bullish crossover is a positive sign, suggesting growing confidence among investors. Although lower than previous peaks, the volume bars are consistent, supporting the current price level.

If MATIC maintains this momentum and stays above the crucial $1.0411 mark, it could target the next resistance near $1.0887, provided by the 200 SMA. A decisive break above this level may pave the way to challenge the $1.2204 region, a previous area of interest for traders. However, if selling pressure mounts and MATIC slips below the 50 SMA, it could see a retest of support near $0.9985, with further potential downside to the $0.9085 zone if the bearish move intensifies.

MATIC's future price movement is at a critical juncture. Should the token sustain its foothold above the $1.02 resistance-turned-support level, it might set its sights on the $1.09 threshold. Maintaining above this level could further establish buyer confidence, potentially dismissing the bearish sentiment. Meanwhile, the RSI is above the midpoint at around 68, suggesting that the buying pressure is in control but not yet overbought territory.

Conversely, if MATIC dips below the $1.00 support line, it may face a decline toward the $0.88 region, marking its lowest valuation within a month.