The Polygon price action shows lower price rejection near the support trendline of the diverging channel. The price rests close to the confluence of the support trendline and the $2.14 horizontal level. Will the price manage to push higher from the high demand level, or will it succumb under rising selling pressure?
Key technical points:
- The MATIC token price breaks below the 50 days EMA and attempts to sustain above the 100 days EMA.
- The intraday trading volume in the MATIC token is $2. Billion, indicating a 21.8 fall.
Source-Tradingview
In our previous coverage of Polygon technical analysis on December 22nd, the token price was trying to break above the $2.5 zone. The coin price did give a bullish breakout, but the sudden increase in selling pressure led to a downfall to $2.
The coin price struggles to sustain above the high-demand area near the confluence of support trendline and a horizontal level at $2.14. However, the increased selling pressure tease a bearish fallout.
The crucial EMAs in the daily chart maintains a bullish alignment. However, the coin price breaks below the 50 days EMA and sustains above the 100 days EMA by lowering price rejection.
The Stochastic RSI in the daily chart showcases the K and D line in the oversold zone. However, the lines will soon give a bullish crossover that can overturn the bearish trend.
The ADX indicator shows a slight fall in the slope, indicating a loss in the previous bullish trend.
MATIC Coin Displays Rejection Candles Near $2 Support
Source-Tradingview
The MATIC token price shows a short-term retracement within a falling channel in the daily chart. However, the psychological support level at $2 shows a high possibility of a bullish reversal with a double bottom pattern.
On a contrary note, the increased selling pressure will induce more fear among investors that can neutralize the demand at $2. Therefore, traders need to keep an eye out for a breakout entry opportunity.
The price action indicates resistance levels at $2.44 after the $2.70 horizontal level in the daily chart. Meanwhile, the previous bullish reversals mark support levels at $1.80 and $1.46.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/polygon-price-analysis-matic-coin-hints-fallout-from-diverging-channel/