Technical Analysis Indicates MATIC Will Soon Be Reduced

  • As a result, the prices are closely tracking two ascending trendlines that are driving the prices upward. As long as the pattern's support trendline is held, players in the mark may experience a steady increase with rare pullbacks.

  • After the channel development, the polygon coin price may drop significantly. Regained significant EMAs may support a future decline. MATIC's intraday volume rose 65% to $1.25 billion.

08 Nov 2022 By: Rohit Tripathi
Technical Analysis I

The parallel channel development is seen in the daily time frame 

Chart because to the Polygon price's quick recovery.

As a result, two ascending trendlines that are pushing the prices upward are aggressively followed by the prices. Therefore, the participants in the mark could see a steady advance with sporadic pullbacks as long as the pattern's support trendline is maintained.

The polygon coin price may experience a large correction in the ensuing trading sessions in response to the channel formation. During a potential downturn, the important EMAs that was regained might provide strong support. MATIC's intraday trading volume is $1.25 billion, which is a 65% gain.

The price of MATIC increased significantly as a result of two big announcements, including the Web2 giant Meta's cooperation with Polygon for buying and selling NFTs on Instagram and JP Morgan's effective usage of the Polygon blockchain network to execute its trades.

Thus, the altcoin increased by about 50%, from $0.87 to $1.3. Additionally, the accumulation of whales and increased volume highlighted a genuine recovery in the price of polygon coins.

Under ideal circumstances, the channel pattern's bear cycle should drive prices back toward the bottom trendline. The price might fall 20% as a result of this probable decline, reaching the combined support of $0.95 and the support trendline. Retesting the aforementioned trendline thus presents a chance to repurchase MATIC on a decline.

A break-down below the bottom trendline, on the other hand, will invalidate the bullish hypothesis.

Technical Idicators

The daily-RSI slope reversed from the overbought region, according to the RSI indicator, indicating that prices may see a large pullback to stabilise the previous recovery.

EMAs: As prices increased, they regained control of the significant EMAs (20, 50, 100, and 200), indicating a bullish prognosis for Polygon as a whole. Additionally, a possible golden crossover between the 50-day and 200-day EMAs may provide a powerful buy signal.

levels of resistance: $1.2 and $1.32

levels of support: $1.02 and $0.95