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MATIC price chart shows the supply zone at $1, acting as the overhead resistance of an ascending triangle pattern. Will buyers break out of the triangle? The bullish reversal rally from the $0.075 demand zone propels the MATIC prices to the overhead resistance of the 200-day EMA. Furthermore, the price action project is a possibility of an ascending triangle pattern with the $1.0 supply zone acting as the overhead resistance. So, will the bullish reversal result in a breakout rally to reach the $1.30 resistance level?
Key Points:
- The Polygon price action shows an ascending triangle pattern.
- The bullish crossover possibility increases between the 50 and 100-day EMA.
- The intraday trading volume in Polygon is $490 million.
Source - TradingView
MATIC Technical Analysis
As mentioned in our previous article, the MATIC prices avoid a downturn below the $0.75 demand zone and sustain above the support trendline. The bull cycle approaches the overhead confluence of the 200-day EMA and the $1 supply zone. Furthermore, the price action displays an ascending triangle pattern in the daily chart with multiple resistances preparing to knock the breakout attempt. But the frequent spikes in the trading volumes support the breakout possibility. Currently, the daily candle shows a Doji formation, with 16 hours left on the clock, following the 4.14% jump yesterday. Sideline buyers can expect a breakout rally to reach the overhead resistance level of $1.30, accounting for a price jump of 30%. Conversely, the prices may revert from the $1 psychological mark to retest the support trendline. However, if the sellers break below the trendline, the prices may test the $0.75 demand zone.
Technical Indicators
The daily-RSI slope shows a diagonal trend crossing above the halfway line, with the 14-day SMA mimicking a similar pathway. Moreover, the MACD indicator shows a growing bullish histogram fueling the fast and slow lines crossing above the zero line. Thus, the indicators maintain a buy signal for the MATIC token. Resistance Levels - $1 and $1.30 Support Levels - $0.84 and $0.75