The short term MATIC price analysis showcases a correction phase in action. However, a bullish pattern in the 4-hour chart highlights the possibility of a bullish reversal. Nonetheless, traders must stay cautious in taking a side before the fruition of the pattern to avoid any traps in the chart.
Key technical points:
- The MATIC price struggles to rise above the 20-day DMA
- The selling pressure increases as the price hints at an evening star pattern formation
- The intraday trading volume in the MATIC coin is $1.21 Billion, indicating a 9.275% fall.
Source- Tradingview
The MATIC price rose to the $2.5 resistance level after finding demand at the confluence of $2 level and the support trendline. However, the price action shows an evening star candle pattern justifying a 4% rejection from a high selling pressure area.
The support trendline maintains an uptrend resulting in the price jump of 20% from its inception. Therefore, the possible retracement can halt near the trendline.
Moreover, the 20-day DMA acts as a dynamic resistance keeping the recent bullish attack in check. However, the constant support from the 100-day DMA helps to carry an uptrend in action.
The Moving average convergence divergence shows a free fall in the MACD and signal lines in the daily chart. However, the falling distribution in the bearish histograms indicates a fall in underlying bearishness.
MATIC Price Action Hints Bullish Pattern Breakout
Source-Tradingview
The MATIC price action forms a cup and handle pattern in the 4-hour chart. The neckline of the pattern is at the horizontal level of $2.40. Therefore, a price jump above the neckline will initiate a new bull run.
The decrease in trading volume during the handle formation of the pattern reflects trapping of momentum. Therefore, a breakout of either side will unleash the trapped momentum, and lead to a strong directional move.
The price action suggests the crucial high supply levels for MATIC price is at $2.84 following the neckline at $2.4 in the 4-hour chart. Meanwhile, the demand levels are at $2.2 and $1.8.
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.
About Author
Source: https://coingape.com/markets/polygon-price-analysis-underlying-bullish-pattern-against-the-ongoing-correction-phase-hopes-to-turn-the-trend/