Polygon (MATIC) maintained a long-term surge as it printed a 6-month-long rising wedge and touched its all-time high on December 27. However, the landscape changed as the alt saw downtrends while presenting a discouraging relationship with the Exponential Moving Average ribbons.
As the prevailing plunging wedge drop nears the long-term footing at $0.961, bulls would be alert to overcome the bearish candle streak on the daily price chart. While publishing this content, MATIC traded at $0.973, dropping 6.5% over the previous day.
Polygon Daily Chart
The latest bearish flag authorized continued selling as Polygon declined beneath its Exponential Moving Average ribbons before testing the support at $0.96. Losing more than 67% from its all-time high saw MATIC falling towards 9-month lows at this publication. This downside phase witnessed a 61.8% FIB support level posing massive obstacles and compressed Polygon within a triangle.
Nevertheless, sellers dominated as sellers dragged the token beneath the golden FIB level. The many bearish engulfing candles saw MATIC confirming a bearish flag that reordered into a plunging wedge. MATIC stays at a crucial juncture at the moment.
The value area at $0.961 remains vital in determining MATIC’s future price actions. A decisive closing beyond this level might translate to a patterned breakout for MATIC to test its EMA ribbons’ sturdiness. Considering historical trends, plus the increasing gap between these ribbons, Polygon bears would likely tighten the rally within the range of $1.2 – $1.3.
Reasoning
The Relative Strength Index finally witnessed a revival within the past couple of days, escaping the oversold region. A possible recovery from the closest trend-line support might affirm a bullish divergence with MATIC price.
Moreover, the Chaikin Money Flow eased from -0.11 and confirmed reducing cash volumes into Polygon. That highlighted a bearish increase. However, its lows presented a similar outlook to the Relative Strength Index.
Final Thought
Polygon might witness a near-term recovery with the declining wedge pattern and the possible RSI divergence. A closing beyond its current setup would propel MATIC to test the EMA ribbons’ boundaries between $1.2 and $1.3.
Lastly, enthusiasts should watch Bitcoin’s trends as Polygon boasts a whopping 90% monthly correlation with the dominant crypto.
Editorial credit: Dennis Diatel / shutterstock.com
