MATIC Technical Analysis: Bears Plan To Overtake The Retest
Polygon is a scaling platform that allows Ethereum-backed blockchains to connect with each other. It can also helps to develop innovative Ethereum blockchains for companies that require decentralized payments.
The network describes itself in the form of 'Ethereum's internet of blockchains' since one of its main goals is to help support Multichain Ethereum ecosystem.
Let us move ahead to read about Polygon technical analysis.
Past Performance of MATIC
MATIC token price fails to sustain above the crucial level of $2 and retraces to the horizontal support zone of $1.80. The retracment comes as an act of bullish breakout retest of the support zone. Hence, a lower price rejection is possible by the day’s end. However, an increase in selling pressure can crack the zone and result in a downfall to the $1.5 support zone.
MATIC Technical Analysis
The MATIC coin price action shows a sudden increase in selling pressure as Bitcoin fails to sustain above the $45K mark. The reversal in BTC creates fear in the overall market driving the altcoins prices lower.
The Stochastic RSI indicator shows a falling trend in the K and D lines after the bearish crossover in the overbought zone. Hence, the indicator reflects the starts of a bearish cycle that has the potential to break the $1.8 support zone.
The MACD indicator shows a saturation in the fast and slow line evident by the sideways movement below the zero line mark. Moreover, the falling trend in the bullish histograms indicate a weakness in the bullish powers.
The crucial Exponential moving averages struggle to keep a bullish alingment as the 50 and 100-day averages on the verge of bearish crossover. However, the 200-day EMA provides dynamic support to keep the MATIC uptrend in action.
In a nutshell, the technical indicators reflect the weakness in the bullish powers as they struggle to maintain the uptrend.
Upcoming Trend
The MATIC coin price action retests the breakout of the $1.8 support zone but the increased selling pressure indicates a possibility of a fallout. Therefore, traders need to be careful before taking a bullish entry.
In case of a fallout, the support levels below the $1.80 support zone are at the 200-day EMA and $1.50. However, the reversal can find resistance near the $2 and $2.20 mark.