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MATIC Technical Analysis: Resurfacing Bulls Prolong Consolidation

Analytics

cryptoknowmics.com 02 September 2022 11:37, UTC
  
Reading time: ~2 m

MATIC price action shows a consolidation range between the $0.075 and $1 psychological mark, delaying the breakout opportunity for sideline traders.  The recent bear cycle in the Matic prices failed to drop below the $0.75 support zone, resulting in a bullish reversal. The bullish reversal rises above the 50 and 100-day SMA with a bullish engulfing candle of 6.25% yesterday. Furthermore, the reverse prolongs the consolidation range if the sellers remain dominant at the psychological mark of $1. Key Points: 

  • The MATIC price action reflects a Bullish cycle restarting within the consolidation range.
  • The bullish reversal Beats the 50 and 100-day SMA.
  • With a market cap of $6.63 Billion, the intraday trading volume of Polygon has increased by 116% to reach $653 Billion.

MATIC/USD Price Chart Source- TradingView

MATIC Technical Analysis

Polygon(MATIC) price chart displays a bullish failure to break below the $0.75 demand zone. Moreover, the retaliating bulls regained trend control with a double bottom to break above the 50 and 100-day SMA. The bullish engulfing candle of 6.25% reflects increased bullish support with a spike in trading volume. Therefore, the possibility of an uptrend to the $1.0 mark increases. If the bull cycle exceeds the psychological mark of $1.0, an uptrend continuation of 30% to the $1.30 resistance level is possible. Conversely, a sudden increase in selling pressure can result in an early bearish reversal and drop the prices to $0.75.

Technical Indicators

The RSI slope displays a diagonally bullish trend of rising above the halfway line as it crosses above the 14-day average line. The bullish crossover in the fast and slow lines with the resurfacing bullish histograms reflects an increase in the underlying bullishness. Hence the technical indicator maintains an optimistic point of view for the upcoming trend in the MATIC prices. Resistance Levels: $1 and $1.30 Support Levels: $0.75 and $0.50


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