Business

Polygon (MATIC) is generating a long-term bullish pattern after the recent low of $1.24

blank

Polygon (MATIC) has broken out of a short-term resistance and may soon break out of a long-term one.

MATIC has been down since hitting an all-time high of $2.92 on Dec. 27. The downside move so far has resulted in a low of $1.24 on Feb 24th. Since then the price has increased. The bounce that followed produced a very long lower wick, which is seen as a sign of buying pressure.

Combined with the January 24th surge, this move created a double bottom (green symbols) which is considered a bullish reversal pattern.

Possible MATIC breakout

In addition to the price action, technical indicators on the daily time frame support the continuation of the upward movement.

This is particularly evident from the strong bullish divergences on both the RSI and MACD (green lines). Such divergences often precede significant trend reversals. However, the RSI has yet to climb above 50 and the MACD is not yet positive.

If there is a break above the resistance line, the next resistance will be $2.10. This is the 0.5 Fib retracement resistance level and a horizontal resistance area.

The 4-hour chart supports a breakout of the long-term descending resistance line. It shows that MATIC has already broken out of a shorter term line.

If the upward move continues, the closest resistance would come in at $1.88. This is a minor resistance level ahead of the big one at $2.08.

Wavenumber analysis

cryptocurrency trader @TheTradingHubb tweeted a chart from MATIC saying that the price could drop one more time to complete its correction.

There are several wave counts that are still valid, so correct engagement is not yet confirmed. If MATIC fails to break above the resistance line, that would be the most likely count.

For the latest from BeInCrypto Bitcoin (BTC) analysis, click here

Disclaimer

All information contained on our website is published to the best of our knowledge and for general information purposes only. Any actions taken by the reader based on the information contained on our website are entirely at your own risk.

https://beincrypto.com/polygon-matic-creates-long-term-bullish-pattern-after-recent-low-of-1-24/ Polygon (MATIC) is generating a long-term bullish pattern after the recent low of $1.24

Songdep

Inter Reviewed is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@interreviewed.com. The content will be deleted within 24 hours.

Related Articles

Back to top button