Categories

After This Most Recent Breakout, What Comes Next for Polygon (MATIC)?

After This Most Recent Breakout, What Comes Next for Polygon (MATIC)

In the most recent phase of Polygon’s bullish run, MATIC broke through the 20 and 50 Exponential Moving Averages before displaying its buying power. However, a fresh wave of selling activity at $1 territory prompted a retreat to the $0.76 support level.

The breaking of the rising channel confirmed the escalating selling pressure. It’s possible that the altcoin will experience a temporary decline in the coming sessions if it sustains a move below the current support range. While this article was being written, MATIC was trading at $0.8058, up 2.8% from the day before.

Daily Polygonal Timescale

After a brief period of consolidation, MATIC bulls have broken through the 3-month trend-line resistance, turning it into support in the most recent ascending channel oscillation. Meanwhile, the $1 value area intersected with the 200 Exponential Moving Average, creating a huge barrier for MATIC’s development.

The most recent uptick in selling volume also signaled a significant downward trend below the more immediate Exponential Moving Averages. Should the price of the stock not manage to close above the 50-day exponential moving average, a drop to $0.66-$0.67 is possible. And as the alternative currency attempts to rein in its volatile break, it may find support around $0.8.

For the 200 Exponential Moving Average to begin trending upwards, the price must eventually close above $0.88–$0.93. There had not been enough volume in the market to sustain a close above the nearby resistance level, which the bulls had yet to do.

Reasoning

The relative strength index (RSI) fell below 50, signaling the triumph of sellers for a brief period. Additionally, the Volume Oscillator has confirmed the strength of the current downward trend with higher highs and troughs over the past two weeks.

The bearish MACD crossover was very close to zero. For the bearish position to be validated during this publication, the price must fall below this threshold. Though the ADX showed some directional bias, it was not strong for the alternative currency.

Concluding Remarks

The combination of MATIC’s dive below the EMA ribbons and the increase in trading volume pointed to a bearish bias. Those goals would remain unchanged. Concluding above the near-term Exponential Moving Averages would lend credence to bearish invalidations. Since the MATIC is highly correlated (95% as of this writing) with Bitcoin, traders and investors should keep an eye on the market leader’s cryptocurrency. As a result, Polygon’s bias will continue to be heavily influenced by signals from the market at large.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.