MATIC price is stabilizing after more than three months of a steady downtrend from a peak of $2.92. This move provides swing traders and long-term holders an opportunity to accumulate the token at a discount before the trend reverses and the altcoin embarks on a massive and exponential uptrend.<\/p>\n
MATIC price in the calm before a massive storm<\/span><\/h3>\nMATIC price has crashed a whopping 55% in the last three months or so from its all-time high at $2.92. This downswing was mainly caused by a trend change in the crypto space as Bitcoin prices dropped from $69,000 to nearly $33,000.<\/p>\n
Like all altcoins, MATIC price followed the king coin\u2019s footsteps, leading to a massive turnaround. Regardless, Polygon seems to have cauterized the bleeding at around the $1.30 support level.<\/p>\n
Since the first retest on 22 January, MATIC\u2019s price has tagged the $1.30 level multiple times. And, every time, this barrier has served as a stable support floor, allowing sidelined buyers to prop the market value of this Layer-2 token.<\/p>\n
After its 30% run-up in March, MATIC price has undone its gains and then gained some value again to retest the aforementioned support barrier. However, this time around, the altcoin seems to be forming a base in preparation for further gains.<\/p>\n
As seen in the chart, the projected trajectory of the MATIC price (in white) tries to forecast how the price action could develop. There is a high chance for buyers and sellers to grapple, leading to a sideways movement, which will eventually lead to an explosive move.<\/p>\n
The resulting upswing will first face the resistance barrier at $1.94 after a 40% upswing. If the bullish momentum is enough, MATIC\u2019s price will flip this hurdle into a foothold, giving way for more buyers to step in.<\/p>\n
In such a case, Polygon is likely to continue heading higher and retest its all-time high at $2.92. This run-up would form a rounded bottom, suggesting a trend reversal favoring the bulls.<\/p>\n
In total, this move would constitute a 100% gain and is likely where MATIC price will see a considerable profit-taking activity occur. Thus, causing a minor retracement or sideways movement.<\/p>\n
![\"\"](\"https:\/\/files.ambcrypto.com\/wp-content\/uploads\/2022\/04\/13182444\/MATICPERP_2022-04-13_18-11-00_dcc07.png\")
<\/a><\/p>\nSource: TradingView, MATIC\/USDT 3-day chart<\/p>\n<\/div>\n
Supporting this massive, yet obtainable trend for MATIC price is the active deposit metric. This on-chain index tracks the incoming deposits to centralized platforms and can be used to determine the formation of local tops and potential areas of profit-taking.<\/p>\n
Since May 2021, the number of active deposits has been on a downtrend from 1291 to 94. This largescale downswing indicates that investors are not interested in selling and are likely to hold their tokens, further supporting the bullish outlook explained from a technical standpoint.<\/p>\n
<\/a><\/p>\nSource: TradingView, MATIC\/USDT 3-day chart<\/p>\n<\/div>\n
Supporting this massive, yet obtainable trend for MATIC price is the active deposit metric. This on-chain index tracks the incoming deposits to centralized platforms and can be used to determine the formation of local tops and potential areas of profit-taking.<\/p>\n
Since May 2021, the number of active deposits has been on a downtrend from 1291 to 94. This largescale downswing indicates that investors are not interested in selling and are likely to hold their tokens, further supporting the bullish outlook explained from a technical standpoint.<\/p>\n