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.
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.
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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