May is looking up for Polygon (MATIC) price as it is seen to be in the green zone for two consecutive days. Polygon bulls have picked up steam and momentum in the new month after bears held the prices down since mid-February.
Despite Polygon’s countless innovative partnerships and bullish news events, its native token remained bearish for most of the 2023 first quarter. And BTC’s impressive price movements in April were still not enough to awaken 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 Relief From Bulls
Polygon (MATIC) bulls have shown resilience and pushed back prices after a major retracement that shook most cryptocurrencies due to a change in market sentiments of investors on the first day of May.
The cryptocurrency markets, which experienced a major rally in BTC price and some altcoins in April, were met with bearish sentiments as the “Sell in May” narrative trooped in.
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Polygon (MATIC), which closed April bearish at $0.97, was seen to decline further as it traded at a price low of $0.94 on the first day.
However, yesterday’s trading session witnessed Polygon (MATIC) recovering as bulls stepped in and pushed back prices.
According to Coinmarketcap data, Polygon (MATIC) is seen to continue from its previous day’s price recovery in today’s trading session. When writing, Polygon bulls are up 3% at a trading price of $0.98.
The trading volume of the layer 2 blockchain token has also seen a near 14% increase in the last 24 hours, which may indicate buying activity from Polygon investors.
MATIC’s price is currently seen to trade 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, may see Polygon bulls pushing 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 into Polygon’s on-chain activity and metrics gives insights into the reasons behind its native token’s recent bullish price movements. Onchain data reports from CryptoQuant reveal that the MATIC exchange reserve in the last 24 hours is on a negative 0.46%.
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A low or negative 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’s exchange netflow today is low when compared to its 7-day average, which is also an indicator of the low selling pressure of MATIC on exchanges.
Featured Image from Economic Times, chart from TradingView.com
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Author: Mudiaga Iritare
