May is looking up for Polygon (MATIC) price as it is seen to be in the green zone for two consecutive days. Polygon bulls have picked up steam and momentum in the new month after bears held the prices down since mid-February.

Despite Polygon’s countless innovative partnerships and bullish news events, its native token remained bearish for most of the 2023 first quarter. And BTC’s impressive price movements in April were still not enough to awaken Polygon bulls, as bears remained adamant and unmoved. However, Polygon (MATIC) bulls remain resilient in their new show of strength in May.

MATIC Price Gets Relief From Bulls

Polygon (MATIC) bulls have shown resilience and pushed back prices after a major retracement that shook most cryptocurrencies due to a change in market sentiments of investors on the first day of May.

The cryptocurrency markets, which experienced a major rally in BTC price and some altcoins in April, were met with bearish sentiments as the “Sell in May” narrative trooped in.

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Polygon (MATIC), which closed April bearish at $0.97, was seen to decline further as it traded at a price low of $0.94 on the first day.

However, yesterday’s trading session witnessed Polygon (MATIC) recovering as bulls stepped in and pushed back prices.

According to Coinmarketcap data, Polygon (MATIC) is seen to continue from its previous day’s price recovery in today’s trading session. When writing, Polygon bulls are up 3% at a trading price of $0.98.

The trading volume of the layer 2 blockchain token has also seen a near 14% increase in the last 24 hours, which may indicate buying activity from Polygon investors.

MATIC’s price is currently seen to trade below the 200-day Exponential Moving Average, with bulls moving to test that area acting as immediate resistance.

A break above the 200-day Exponential Moving Average (EMA), currently trending at $1.052, may see Polygon bulls pushing the price to the next available resistance.

Polygon MATIC seen trading below its 200 EMA on the daily timeframe | Source: MATICUSD on TradingView.com

Polygon Onchain Analysis

A close look into Polygon’s on-chain activity and metrics gives insights into the reasons behind its native token’s recent bullish price movements. Onchain data reports from CryptoQuant reveal that the MATIC exchange reserve in the last 24 hours is on a negative 0.46%.

Related Reading: Prominent Analysts Vouch For Crypto As The Banking Stocks Nosedive

A low or negative exchange reserve indicates reduced selling pressure of a digital asset, while a positive indicates increased selling pressure of an asset from holders and traders.

Polygon’s exchange netflow today is low when compared to its 7-day average, which is also an indicator of the low selling pressure of MATIC on exchanges.

Featured Image from Economic Times, chart from TradingView.com

Polkadot has proven successful in a number of areas recently. Data from Santiment shows that there has been a dramatic increase in development on Polkadot.

But does this mean a brighter future for Polkadot? Data shows that the highest amount of transfers occurred on September 16.

In addition, there’s even better news. Parallel chaining is likewise very active. The volume of transactions using these secondary chains on the Polkadot main chain is an indicator of this action.

The GLMR token from Moonbeam and the MOVR token from Moonrivers are two of the most well-known.

Chart: TradingView.com

Polkadot Investors Up In Numbers

Investments on Polkadot are also at an all-time high, with DFG coming in first place with 52 active projects.

While these claims certainly sound promising, how will they impact DOT’s market presence? The coin’s performance on the market has improved, thanks to recent changes.

Investor confidence in Polkadot’s ecosystem and native token DOT can increase if the crypto market recovers with the broader financial markets.

Both the DeFi and the more conventional financial markets are experiencing unfavorable market circumstances that make price changes unlikely. The recent increase in interest rates by 0.75 percent exacerbates the already intense selling pressure.

DOT Challenged By Adverse Market Conditions

Fear caused by recent CPI data is still evident on the charts as bears continue to test the lower part of the Donchian channel. Even though bulls are attempting to gain momentum, adverse market conditions continue to outweigh them.

DOT is trading at $6.48 as of this writing, down 6.5 percent in the last seven days, data from Coingecko show. However, DOT is expected to receive excellent news from the charts.

The critical support at $6.04 has slowed the price’s precipitous decline. It bolsters the strengthening bullish trend, which is more evident on the 4-hour to 1-hour tick indicators.

The price has settled between $6.04 and $6.83 near the center channel. After a sharp rejection candle at the opening of today’s trading session, the bulls may be able to penetrate and consolidate above the immediate resistance level of $6.57 if there is less volatility around these price levels.

The current price movement according to the XABCD harmonic pattern indicates that investors and traders should buy the dip, so propelling the price into an uptrend.

DOT total market cap at $7.15 billion on the daily chart | Source: TradingView.com

Featured image from VOI.id, chart from TradingView.com