Polygon Price Analysis: MATIC Token Slumps as Hacker Swaps 6.84M Polygon

The Polygon price has fallen almost 1% in the past 24 hours, with the MATIC/USD trading at $0.3754. Its 24-hour trading volume has notably plunged 25% to $38 million, suggesting dwindling market activity. MATIC is now down 0.9% in a week and 26% in a year. Despite the outlook, all hope is not lost, as the coin is potentially on course for substantial growth once the wider market shifts the momentum. 

Meanwhile, an Indonesian exchange, Indodax, has been hacked with a large outflow of cryptos worth 20M swapped. The hacker has swapped most of the stolen assets to native cryptocurrencies and currently holds about 6.84 million Polygon worth $2.56 million. Other swapped cryptos include 25 Bitcoin, 16.7M Tron, and 5,584 ETH. 

🚨🚨 The Indonesian exchange @indodax was hacked for $20M ~9 hours ago!

So far, the hacker has swapped most of the stolen assets to native cryptocurrencies and currently holds:
• 5,584 $ETH ($13M) on #Ethereum and #Optimism
• 6.84M $POL aka $MATIC ($2.56M) on #Polygon
• 16.7M… https://t.co/G57jWJN0eL pic.twitter.com/9DTTLG9hFa

— Spot On Chain (@spotonchain) September 11, 2024

Polygon Statistical Data

Based on CoinmarketCap data: 

• MATIC price now – $0.3754
• Trading volume – $38 million
• Market cap – $1.31 billion
• Total supply – 10 billion
• Circulating supply – 3.49 billion 
• MATICranking – #53

Polygon Price Aims for a Breakout Above the Consolidation Phase

After the Polygon price hit a high of $0.5767 on August 24, the token began to retrace as the bears exerted pressure in the market. The MATIC token fell like a dead weight in the air with no strong guards to keep the bearish sentiments in check. However, the bulls have gathered some strength at the $0.3587 support level, regaining composure to prevent further downside.

This has led to a tug-of-war between the bulls and the bears, forcing the Polygon price into a consolidation phase. Over the past few days, the MATIC token has been stuck in a tight range, with the upper limit/resistance at $3817 and the lower limit/support at $0.3587. It is worth noting that this moving period between horizontal support and resistance levels may act as an accumulation period before the bulls initiate a strong leg up.

Based on the technical analysis, there is a tug-of-war between the bulls and the bears, with the odds favoring the downside. To start with, the bulls are suppressed below the 50-ay and 200-day Simple Moving Averages (SMAs). In this case, they must bring down the $0.778 and $0.4307 technical barriers to resume an uptrend. 

The Relative Strength Index is trying to defend above the mean level of 50, currently at 44. Its position below 70 suggests MATIC has substantial upside potential before becoming overbought. The bulls might break out if investors continue adding to their positions at this level.

On the other hand, the Moving Average Convergence Divergence (MACD) indicator holds a sell signal. This is manifested by the MACD indicator in blue crossing below the signal line in orange. Traders looking to book for long positions should wait until the MACD changes.

Polygon Price Outlook 

Like many cryptos in the market, Polygon’s price is bleeding. On the downside, the $0.3587 area serves as immediate support. A breach below this level would see the Polygon price retesting the $0.3407 mark. 

It would be prudent for traders to watch for a breakout above the confluence resistance formed by the 50-day Simple Moving Average (SMA). Such a move would pave the way for the anticipated upswing first to $0.4307 and later to $0.5.