MATIC Price Analysis: MATIC Sees Slight Rebound, Polygon Ranks Among Top Traded Tokens As Investors Rush Dip

• Polygon (MATIC) is seeing a slight rebound following recent declines
• At the time of writing, MATIC was exchanging hands at $2.52, up 3.50% on the day
• Two Ethereum whales bought nearly 2 million MATIC tokens or $5 million worth

Polygon (MATIC) is seeing a slight rebound after declines from its $2.92 all-time highs. MATIC suffered rejection after marking record highs at $2.92 on Dec. 27. The downswing extended amid yesterday’s market sell-off, with MATIC shedding nearly 16% to lows of $2.44 on Dec. 28. At the time of writing, MATIC was exchanging hands at $2.52, up 3.50% on the day. According to Data from WhaleStats, a whales’ surveillance website, Polygon’s MATIC ranks among the top ten traded tokens in the last 24 hours as investors rush dip. Large entities are buying MATIC’s recent dip as two Ethereum whales bought nearly 2 million tokens or $5 million worth. MATIC ranks 14th largest cryptocurrency by market capitalization, according to Coinmarketcap data.

Key Levels
Resistance Levels: $3.50, $3.00, $2.61
Support Levels: $2.40, $2.26, $2.00

MATIC/USD Daily Chart: Bullish

MATIC/USD Daily Chart

MATIC/USD pair tilted lower after reaching the $2.925 level earlier in the week and remains at an all-time high at the moment. The pair declined to a low of $2.444 in the prior session and continues to rally in a bid to sustain recent gains, pushing the price to an intraday high of $2.614. Buyers see its retracement as an opportunity to buy the dip after the RSI returned towards 55.

Having started the month around the $2.006 level, MATIC gains have exceeded even the most bullish analyst forecasts. The bullish rebound on the daily chart indicates that the upsurge could be picking up steam. Above the $2.735 and the all-time high of $2.925 would be the next target when momentum makes its way back into the upper channel.

MATIC/USD 4-Hour Chart: Ranging

MATIC/USD 4-Hour Chart

The surge in MATIC on the 4-hour chart softens under the short-term moving average (MA 50). Although recent surge to the all-time high at $2.925 has put the bears on the defensive. Intraday traders took profit after the relative strength index showed overextension. The current consolidation could be an opportunity for the bulls to regroup and catch their breath.

The demand zone around $2.406 is a key level supporting the rebound. On the upside, $2.618 on the moving average (MA 50) is the closest resistance. And its breach may trigger a broader rally towards the all-time high at $2.925. A close above the near-term resistance around $2.618 is a short-term confirmation that sentiment favors the upside.

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