Polygon price analysis: MATIC corrects after a 54% increase

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MATIC’s price has reached a new all-time high of $0.91 but is currently trading near $0.70

Polygon (MATIC) saw its price against the U.S. dollar hit a new all-time high of $0.91 after its 54% gains on April 27. The crypto-currency has lost some of its gains as traders looking for short-term profits look to sell.

MATIC/USD is trading around $0.72, down from its intraday highs above $0.90. It is possible that MATIC will face increased selling pressure, especially if the long-awaited altcoin season fails to rise as Bitcoin struggles.

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Despite the losses, the crypto-currency remains up over 20% on the day at the time of writing. Weekly gains currently stand at 112%.

According to analytics platform Santiment, Polygon’s on-chain metrics are strong to suggest that further gains are possible.

Rival Polkadot has also seen a remarkable increase in its total blocked value (TVL) in the protocol. DeFi Pulse shows that $1.19 billion in asset value is currently locked into the payment protocol, with that figure including an increase of more than 19% over the past 24 hours. MATIC is currently the 15th largest DeFi project by TVL.

MATIC Price Analysis
The MATIC/USD pair experienced parabolic action after breaking the upper limit of a parallel channel on April 26. The breakout also resulted from a cup and handle pattern, with a new high formed when buyers broke the previous resistance level at $0.53.

The green candle at 54% brought prices into discovery mode before the rally began to fade. The daily MACD and RSI suggest that buyers are in control, which could support a further push higher.

If price does rise, the primary target is $1, with the potential for $1.50 if the altcoin market comes alive in the near term.

While the price outlook remains bullish, a prolonged bearish correction could put the upside at risk.

Key support levels are at the 0.382 ($0.69) and 0.618 ($0.55) Fib levels of the $0.91 rise. If price breaks below these demand areas, a bearish reversal could strengthen and see the decline target the 50 SMA line near $0.38.

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