The technical chart indicates the overall trend for Polygon coins is still bullish. However, the price has recently given a breakdown from the broadening channel pattern, indicating the correction phase will extend. The coin showed decent sustainability below the breakout point($2.1), aiming the next support level of $1.7
Key technical points:
- The MATIC coin price challenged a strong support level of 100-day EMA
- The daily-MACD indicator shows its lines are on the verge of slipping below the neutral zone.
- The intraday trading volume in the MATIC coin is $1.21 Billion, indicating a 9.275% fall.
Source- Tradingview
In our previous coverage of Polygon technical analysis, the coin price was resonating in an ascending broadening channel pattern of the daily time frame chart. The recent correction phase dropped the price to the bottom support trendline, hoping for a bullish reversal.
However, on January 7th, the bloodbath in the crypto market gave a huge bearish candle, breaching the confluence support of a rising trendline and $2.1 level.
As per the crucial EMAs(20, 50, 100, and 200), the MATIC coin price trading above the trend defining 100 and 200 EMA, maintains a bullish trend. However, the correction phase has engulfed the 20 and 50 EMA lines, providing valid resistance during the upwards rally.
The Moving average convergence divergence shows the MACD and signal are steadily moving towards the neutral zone from above. Anyhow, with the ongoing selling, these lines could soon give a bearish breakout.
Traditional Pivot Level Shows Remarkable Confluence With MATIC/USD Chart Levels
Source-Tradingview
The MATIC price performed a two-day retest phase to identify sufficient demand from the rising trendline. As for today, the coin shows a -8% follow-up candle, charging towards the next support level of $1.7.
The rising ADX(34) line signals the increasing underline bearish in this lower time frame chart.
The traditional pivot suggests the important resistance levels for MATIC price is at $2.18, followed by a $2.5 horizontal level in the 4-hour chart. Meanwhile, the support levels are $1.8 and $1.5.
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-bearish-sentiment-in-crypto-market-triggers-ascending-channel-fallout/