The previous two months had Polygon investors selling on surges utilizing the descending trend-line. The retracement rally saw the altcoin losing about 50% of its value. Nevertheless, the Relative Strength Index chart for MATIC presents an optimistic divergence, highlighting a potential bullish breakout for the alt.
Points to Consider
- Polygon sellers flipped the 20-day exponential moving average into a critical resistance area.
- MATIC price action squeezes at the pattern’s top.
- Polygon’s intraday trading volume is $662.3 million, suggesting a 29.5% drop.
MATIC/USD technical chart shows a descending triangle setup on the 24-hour timeframe. This bearish pattern had the alternative coin plummeting by 50% since its December peak of $2.9.
The latest rejection from the resistance by 200-day exponential moving average and descending trend-line saw MATIC dropping 13% toward the neckline at $1.4. Nevertheless, the price action approaching the pattern’s peak might trigger a breakout soon.
Though a descending triangle formation suggests ongoing downtrend continuation, the daily Relative Strength Index chart displays an optimistic divergence on the final two swing lows, indicating potential upside breakout for MATIC.
An upward reversal from the support at $1.4 would see buyers challenging the confluence of massive kevels: the 200-day exponential moving average, $1.7, and descending trend-line. Breakout plus closing beyond these resistance hurdles would present the first price recovery signal. That way, Polygon will target the $2 level.
Contrarily, bears taking MATIC beneath the bottom support of $1.4 will reflect intensified selling momentum. That might sink the altcoin towards the psychological support around $1.
MATIC Technical Indicators
MATIC has its price beneath the critical exponential moving average (20-50-100 and 200), presenting a bearish bias. Moreover, the altcoin’s chart shows a 50-day and 200-day exponential moving average nearing a bearish cross. Such developments attract more sellers, translating to further downside.
Nevertheless, the MACD shows the slow and fast line nearing the neutral territory. That reflects strengthening bullish momentum.
Bears seem to dominate the broad market at this publication. The global crypto market capitalization stands at $1.74 trillion, following a 1.02% decline within the past day. Maintaining such trends will catalyze more downside for MATIC.
Resistance zones: $1.75, $2
Support zone: $1.4, $1.2
Editorial credit: FellowNeko / shutterstock.com
