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Polygon (Matic) hints at a morning star pattern to fuel a trend reversal rally from crucial support at $0.38. Will the bullish trend in MATIC reclaim $1 with a breakout run?
With a falling channel trend stuck at $$0.38, Polygon bulls are teasing a trend reversal rally. As the underlying demand grows for the MATIC token, the short-term sentiments tease a bullish continuation amid the broader market slowdown. Will Polygon reclaim $0.50 for a breakout rally this week?
$0.38 Support Halts The Falling Channel Trend
Taking another support from the $0.38 level after a span of 2 years, Polygon shows a falling channel in action. With the altcoin price failing to sustain above critical levels, the downfall warns of a breakdown.
However, the weekly candle last week forms a long-tail candle, suggesting a strong underlying demand that is able to overturn the supply pressure. With a positive cycle incoming in the falling channel, Polygon eyes a breakout run to reclaim lost levels.
Supporting the bullish revival, the weekly RSI line shows a bullish divergence in the last two low formations, teasing a jump ahead. Further, the weekly RSI line hovers above the oversold boundary with increased reversal chances.
Currently, the Polygon price trades at $0.409 and starts the week with a 1.24% price jump. Thus, Polygon signals a potential uptrend this week if the broader market remains stable or recovers.
Polygon Derivatives Hits Crossroads
Despite a decline in OI, the Polygon is down to $107 Million, with the volume hitting $170M by an 87% rise.
Further, the Long/Short ratio of the past 24 hours is under 1, at 0.9004, reflecting a bearish narrative. However, the top traders on Binance on account basis reveal 1:3 in bullish support.
Will Polygon Hit $1?
With the Doji candle at a crucial support level, the price action traders anticipate a trend reversal in Polygon. Further, it increases the chances of a morning star pattern at the baseline.
Thus, the altcoin may shortly experience a breakout rally of a falling channel pattern. As per the Fibonacci levels, the uptrend could hit the 50% Fibonacci level at $1.050.