After sliding near the $1.3 standard for over 3 months, Polygon (MATIC) bears echoed with the market-wide worry belief. As an outcome, the coin ignored the purchasing propensities by prompting huge sell-offs over the last month.
With purchasers keen to turn down lower costs, a comfy close above the Point of Control (POC, red) would place MATIC for a test of the 23.6% Fibonacci level. At press time, the alt traded at $0.688, up by 3.57% in the last 24 hours.
MATIC Daily Chart
An early April turnaround from the $1.7 declared the selling spree as MATIC fell listed below the basis line (green, 20 SMA) of its Bollinger Bands (BB). Post an over 70% decrease from 4 April, MATIC plunged towards its 1 year short on 12 May. Throughout the descent, the 38.2% and the 23.6% Fibonacci levels postured considerable healing difficulties.
But the sellers noticeably took control as the bears kept the alt towards the lower band of BB for the last 47 days. With several bearish engulfing candlesticks, MATIC saw a bearish pennant on the day-to-day timeframe that compressed near its POC.
A close listed below the POC would increase the opportunities of a bearish break listed below the pattern. In which case, MATIC would intend to retest the strength of its $0.6-zone assistance. Must the bulls discover an upward escape from the bonds of its pennant, the alt might see itself evaluating the resistance of the basic line of the BB before continuing its uptrend?
The RSI saw a well-needed revival from the oversold mark on its peaks and troughs over the last couple of days. A possible turnaround from its instant trendline resistance might verify a bearish divergence with the cost.
Also, the CMF has a bearish disposition. Despite its current increase, any drawdown from the -0.8 level would lead to a bearish divergence. The AO revealed steady ease in offering pressure. Any greater peaks listed below the zero-line might lead to a bullish twin peak setup.
While getting in calls might not pay yet as it would total up to wagering versus the dominant pattern. The purchasers might wait on a close above the 23.6% level, followed by the basis line to bag in the benefit from a possible bull run.
Moreover, the investors/traders should keep a close eye on Bitcoin’s motion as MATIC shares a shocking 97% 30- day connection with the King coin.