Polygon Price Recovers 3%, MATIC Heads for 61.8% Fib Retracement
Polygon's price recovered nicely, bouncing off by more than 3%. MATIC/USDT is currently trading at $1.58, having recovered from a low of $1.31. Yesterday, MATIC/USDT closed at $1.5580 after placing a high of $1.6090 and a low of $1.4110.
Do you know what prompted such a recovery? Keep reading and find out!
Kazakhstan Turns off the Power to Bitcoin Miners
Kazakhstan Bitcoin miners are unlikely to earn any BTC during the last week of January. The state-owned Kazakhstan Electricity Grid Operating Company (KEGOC) acknowledged to Bloomberg that power was cut off to the cryptocurrency mining sector from January 24 to January 31. That didn't stop Central Asia from going dark on Tuesday, when a downed power line cut off power and water to millions in Kazakhstan, Kyrgyzstan, and Uzbekistan.
Although the governments of both countries stated that power would be restored, cryptocurrency miners in Kazakhstan will not have access to it for the foreseeable future. Thus, the leading cryptocurrency, Bitcoin, and altcoins like MATIC struggle to recover.
Crypto Market Capitalisation Hit $1.66 Trillion-Up 1.68%
During the last 24 hours, the global crypto market capitalization increased by 1.68 percent to $1.66 trillion, with a market volume of $80.34 trillion.The cryptocurrency market cap for decentralized finance (DeFi) is $13.24 billion, while stablecoins have $80.32 trillion. To stabilize their price, stablecoins are linked to an asset, such as the dollar or any other fiat currency or gold.
Bitcoin's market dominance increased to 42.04 percent this morning, with the asset trading at $36,860.86 globally. Bitcoin, the world's largest and most well-known cryptocurrency, is now worth about half of what it was in November when it peaked at $69,000. On January 21, it dropped precipitously. The BTC/USDT has experienced wild price swings as risk appetite has waned due to inflation fears and expectations of a faster pace of interest rate hikes from the US Federal Reserve.
A slight upswing in the BTC/USDT is also boosting demand for altcoins. Perhaps, that's another reason we see a recovery in MATIC/USDT.
Improvements in Crypto Market Sentiment & Weaker Dollar
The MATIC coin followed the prevailing improved market sentiment and turned green for the day. The declining US dollar added further strength to the coin.
The US dollar index, which measures the greenback's value against a basket of six major currencies, fell and supported the upward momentum in MATIC/USD.
In addition to the discussed fundamentals, technical analysis also plays a significant role here. Let's take a look.
Polygon Price Chart on the Daily Timeframe | Source: MATIC/USDT
Polygon (MATIC/USDT) Daily Technical Levels
|Pivot Point: 1.526|
Polygon Price Analysis - MATIC Heads North to 61.8% Fib Retracement
Polygon is currently trading slightly bullish at $1.6215, bouncing off support at $1.31. A "hammer candle" on the daily chart indicates a solid bearish trend has followed. Such a candlestick pattern typically converts a bearish trend to a bullish trend, so the odds of an upswing remain high.
The leading indicators like the RSI (Relative Strength Index) and Stoch RSI hold below 20, indicating that sellers are exhausted. Sooner or later, the buyers might take charge and push MATIC prices higher.
On the bullish side, MATIC/USDT's immediate resistance stays at $1.76 (38.2% Fib level). A spike in Polygon demand can slice through MATIC prices towards 50% and 61.8% Fibonacci retracement levels of $1.90 and $2.03, respectively.
Alternatively, increased selling pressure can trigger a bearish breakout below the $1.31 support zone. The next major support will prevail at $1.20 and $1.04.
Good luck, fellas. Stay tuned for exciting updates!
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