By Franklin Smith
The MATIC/USD price chart shows Polygon on a rising parallel channel. The price resonated between the vital levels of the pattern while the alt undergoes a normal correction phase, confirming the price will dip further towards the support trend-line. Watch these levels since they can obstruct or support this price retracement.
Vital Technical Points
- MATIC price secured massive support from 100 exponential moving average lines.
- Polygon token has its intraday trading volume at $1.8 billion.
MATIC/USD Chart
According to the daily time frame price chart, the asset respects the rising channel pattern’s level. Recently, the price met rejection at the overhead obstacle trend-line. That had MATIC eying the bottom trend-line.
So far, the downward move has translated to an 18% drop in Polygon’s price, and it is halfway to its destination. Nevertheless, MATIC registered a significant breakdown from the $2 support on 13 December. For now, the alt retest the level for resistance.
The critical exponential moving averages (20-50-100 and 200) indicate bullishness in the price chart. Furthermore, the 100-EMA provides MATIC excellent dynamic support. The daily RSI (51) nears the bearish region, hovering beyond the neutral line. Also, the Relative Strength Index chart indicates bearish divergence, indicating buyers’ weakness.
MATIC/USD Four-Hour Chart
This low time-frame price chart flashes multiple higher rejection candlesticks around the new resistance area of $2. A decisive close under this area might translate to a further drop in MATIC price, exploring the bottom support trend-line for a 17% crash.
The technical chart shows the closest resistance level at $2, then $2.23. On the other hand, the support areas are $1.78, then $1.66.
For now, the crypto market trades on weak supports, awaiting for the correct catalysts to trigger a move in either direction. For instance, BTC is yet to overcome the critical level at $50K. Though trading with gains today, Bitcoin seems not ready for steady upswings.
The world’s largest digital currency has correction chances before recording reliable moves. That can mean plunges for altcoin like MATIC in the near term. The altcoin can witness another 17% crash before gaining ground.
By Dennis Diatel – shutterstock.com