- Polygon (MATIC) has dropped nearly 1% in the past 24 hours, largely due to a hacker swapping 6.84 million tokens following an Indodax exchange breach.
- Despite current bearish trends and technical challenges, the token may see a potential breakout if key resistance levels are surpassed.
The Polygon price has seen a minor dip, falling almost 1% in the past 24 hours, with the MATIC/USD pair trading at $0.3754. This slump comes as the token’s 24-hour trading volume plunges 25% to $38 million, reflecting dwindling market activity. MATIC has now lost 0.9% over the past week and 26% over the past year. Despite this bearish outlook, there remains potential for substantial growth if the broader market momentum shifts.
Indodax Hack and Market Impact
Adding to Polygon’s woes, an Indonesian exchange, Indodax, recently suffered a significant hack resulting in a $20 million crypto outflow. The hacker swapped most of the stolen assets into native cryptocurrencies, now holding approximately 6.84 million Polygon tokens worth $2.56 million. Other affected cryptocurrencies include 25 Bitcoin, 16.7 million Tron, and 5,584 Ethereum.
🚨🚨 The Indonesian exchange @indodax was hacked for $20M ~9 hours ago!
— Spot On Chain (@spotonchain) September 11, 2024
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
Polygon Price Aims for a Breakout Above the Consolidation Phase
Following a high of $0.5767 on August 24, the MATIC token has retraced significantly due to bearish market pressure. This retracement saw the token drop to the $0.3587 support level, where the bulls managed to regroup and prevent further losses. This tug-of-war between bulls and bears has forced the Polygon price into a consolidation phase, characterized by a tight trading range between $0.3817 (resistance) and $0.3587 (support).
This consolidation period is crucial as it may serve as an accumulation phase before a potential bullish breakout. Technical analysis indicates a predominance of bearish sentiment, with the price suppressed below the 50-day and 200-day Simple Moving Averages (SMAs). To resume an uptrend, bulls need to overcome significant technical barriers at $0.778 and $0.4307.
Technical Indicators and Market Sentiment
The Relative Strength Index (RSI) is currently defending above the mean level of 50, standing at 44. This position suggests that MATIC has substantial upside potential before entering overbought territory. A breakout might occur if investors continue to add to their positions at this level.
Conversely, the Moving Average Convergence Divergence (MACD) indicator signals a bearish outlook. The MACD line (blue) has crossed below the signal line (orange), indicating a sell signal. Traders looking for long positions should wait for a bullish MACD crossover.
Polygon Price Outlook
Like many other cryptocurrencies, Polygon’s price is currently under pressure. Immediate support is found at the $0.3587 level, with a potential breach opening the door to a retest of the $0.3407 mark. Traders should watch for a breakout above the confluence resistance formed by the 50-day SMA, which could pave the way for an upswing to $0.4307 and eventually $0.5.
While Polygon faces immediate challenges, including market consolidation and the fallout from the Indodax hack, the potential for a bullish breakout remains if key technical barriers are surpassed and broader market conditions improve.