June 6, 2023

Disclaimer: The results of the following analysis are the author’s sole opinion and should not be considered investment advice.

For the past two months, Polygon [MATIC] The bulls have been in the lead as they established the altcoin’s position beyond the 20/50 EMA. This recovery has triggered a key bullish crossover at the 20 EMA (red) and 50 EMA (cyan).

A break above the four-month-old trendline support (previous resistance) gave the bulls enough firepower to retest the $0.95 ceiling. A convincing close below the pattern could expose the cryptocurrency to near-term downside risks in the coming sessions.

At press time, MATIC was trading at $0.908, down 2.34% over the past 24 hours.

MATIC daily chart

Source: TradingView, MATIC/USDT

A persistent ascending channel (white) trajectory reveals a potential uptick in bullish pressure. As a result, the broader outlook is starting to turn slightly to the bulls.

Alas, with the 200 EMA resistance aligned with the $1.04 to $0.95 range resistance, MATIC could face a tough hurdle in the next few sessions.

On the other hand, an empirical bullish crossover of the 20/50 EMA has secured near-term support in the 20 EMA area. Therefore, the alt can continue to compress in the $0.74-1 range before committing to a trend.

A break below the ascending channel could trigger a near-term drop to the $0.74 level before a possible reversal. A final close above $1.04 could spark a test of the ascending channel’s upper trendline before a pullback.


Source: TradingView, MATIC/USDT

The Relative Strength Index (RSI) ensures it is above its midline to paint a slight buying advantage. Sustained gains above the 58-point support level are likely to continue the recent buying bias.

In addition, the Chaikin Money Flow (CMF) fell below zero underscoring the sales strength. Even so, it has made lower troughs over the past two weeks with a bullish divergence along with price action.

The Volume Oscillator (VO) is in a sharp downtrend due to a sharp drop in volume over the past few days. A potential uptick in trading volume could help alt emerge from its low volatility phase.

in conclusion

The movement of MATIC above its 20/50 EMA band reflects the near-term bullish advantage. A bounce off the lower trendline of the ascending channel could encourage a bull market ahead of a pullback.

However, a break below this reversal pattern could lead to a short-term decline. The goal will be the same as discussed above.

Lastly, investors/traders must keep an eye on Bitcoin’s movements as MATIC has a staggering 86% 30-day correlation with King Coin.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *