Polygon (MATIC) has seen two consecutive days in the green, as it looks for a stronger price in May. Polygon bulls have gained momentum in the new month, after bears kept prices low since mid-February.
Despite numerous innovative partnerships and optimistic news events from Polygon, its native token remained bearish for the majority of the first quarter of 2023. And even the impressive price movements of BTC in April were not enough to awaken the Polygon bulls, as bears remained relentless and unmoved. However, the bulls of Polygon (MATIC) are now showing resilience and strength in May.
MATIC Price Receives Relief from Bulls
The Polygon (MATIC) bulls have shown resilience, pushing prices back up after a major retracement shook most cryptocurrencies due to a change in investor market sentiment on the first day of May.
The cryptocurrency markets, which experienced a major rally of BTC prices and some altcoins in April, encountered bearish sentiments as the “sell in May” narrative took hold.
Polygon (MATIC), which closed April bearish at $0.97, was further dropped as it traded at a low of $0.94 on the first day.
However, in yesterday’s trading session, Polygon (MATIC) recovered as bulls stepped in and pushed prices back up.
According to Coinmarketcap data, Polygon (MATIC) is expected to continue its price recovery in today’s trading session. At the time of writing, Polygon bulls have risen by 3% to a trading price of $0.98.
The Layer-2 blockchain token’s trading volume has also increased by almost 14% in the last 24 hours, indicating buying activity from Polygon investors.
The price of MATIC is currently trading below the 200-day exponential moving average (EMA), with bulls moving to test this area, which acts as immediate resistance.
A breakthrough above the 200-day exponential moving average (EMA), currently trending at $1.052, could lead Polygon bulls to drive the price towards the next available resistance.
Polygon Onchain Analysis
A closer look at Polygon’s on-chain activities and metrics provides insights into the reasons behind the recent bullish price movements of the native token. On-chain data reports from CryptoQuant show that the MATIC exchange reserve was at negative 0.46% in the last 24 hours.
A low or negative currency reserve indicates reduced selling pressure of a digital asset, while a positive one indicates increased selling pressure of an asset by holders and traders.
Polygon’s exchange net flow today is low compared to its seven-day average, which is also an indicator of low selling pressure of MATIC on exchanges.
