The MATIC price gave a bearish candle from the wedge pattern’s utmost resistance trendline resulting in a 4.64% fall. However, the anticipation of a bearish continuation was sabotaged by the lower price rejection followed by a jump of 1.65%.
Key technical points:
- Polygon price trend remains trapped within the falling wedge.
- The bullish retracement within the bearish pattern hints further recovery
- The crucial EMAs in the daily chart gives a dearth cross.
Source- Tradingview
The MATIC/USD daily chart shows a falling wedge pattern with the price trending below the psychological mark of $1.50. The downtrend fills the falling wedge indicating a breakout rally shortly.
The opposing trendlines seem to be of equal strength as they have kept the trend momentum trapped for more than a month now. Therefore, the breakout of either side will result in a significantly volatile move.
The death cross of the 50 and 200-day EMA project a rise of bearish influence of the price pattern and increases the chances of fallout.
Despite multiple attempts, the daily RSI slope shows a flattish movement with a bearish nudge as it fails to rise above the 50% mark.
MATIC/USD: Weekly Timeframe Chart
Source- MATIC/USD chart by Tradingview
The MATIC/USD weekly chart shows Doji formations near the 50-period EMA at $1.41. A potential bearish wedge breakout in the daily chart will result in the 50-week EMA fallout. Therefore, a downfall move of almost 30% is possible.
The MATIC price action squeezes between the descending trendline and stiff support at $1.4. The buyers need to breach and sustain above the dynamic resistance to obtain their first sign of recovery.
- Resistance levels- $2 and $2.4
- Support levels- $1.33 and $1
Disclaimer
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Source: https://coingape.com/markets/matic-price-prediction-wedge-pattern-fallout-could-encourage-matic-bears-for-a-30-downfall-rally/