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MATIC Technical Analysis: Reversal Pattern Aims to Crack $0.64

Analytics

cryptoknowmics.com 08 July 2022 13:04, UTC
  
Reading time: ~2 m

MATIC price action nearing the completion of the cup and handle pattern formation indicates a potential rally to the $0.8 mark. Key technical points: 

  • The MATIC price is rising for the fifth consecutive day.
  • The long-wick rejection in today’s daily candle reflects supply pressure of $0.634
  • The 24-hour trading volume of Polygon is $777.9 Million, indicating a hike of 34%.

Past Performance of MATIC

The MATIC/USDT witnessed a constant downfall from April to Mid-June, accentuated by a descending trendline. The altcoin depreciated nearly 81% as it plunged to a $0.3288 low. Following the collapse, the coin initiated a lateral walk and revealed the formation of a cup and handle pattern. TradingView Chart Source- Tradingview

MATIC Technical Analysis 

The Handle portion for the reversal pattern found practical support at the $0.485 mark. Thus, on July 4th, the MATIC price bounced back from the mentioned level and appreciated 24.8%. The coin price gradually reached the $0.634 neckline resistance, preparing for a bullish breakout. The MACD indicator shows the fast and slow are on the verge of crossing above the neutral zone, providing an additional confirmation for buyers. Moreover, the rising green bars on the histogram chart indicates sustained buying. The daily RSI slope jumps above the 20-SMA and neutral line, indicating a positive turnaround in traders' sentiment. Moreover, the indicator slope sustainability in the bullish territory should support buying momentum. In a nutshell, the technical indicators bolster the growth in MATIC prices and encourage a breakout of the cup and handle pattern.

Upcoming Trend

If the buyers breached the $0.634 resistance with a daily-candle closing above it, the accelerated bullish momentum would drive the coin price 25% higher to the $0.8 mark. Conversely, the five consecutive greens candle backup by decreasing volume activity reflects weakness in bullish commitment. Thus, a possible reversal from the above resistance would continue the price consolidation. Resistance Levels:  $0.634 and $0.8 Support Levels: $0.458 and $0.322


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