MATIC Technical Analysis: Buyers Under Pressure With Trendline Fallout
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The MATIC price action displays a reversal from the 200-day EMA breaking below the ascending support trendline and the 50 and 100-day EMAs. The bearish candle with a 4.62% drop gives the bearish breakout, teasing a downfall to $0.75. So, should you book profits before the Polygon prices drop below $0.75, or will the buyers keep the market price floating within consolidation?
Key Points:
Source - TradingView
MATIC Technical Analysis
As warned in our previous article, the MATIC prices failed to sustain above the support trendline leading to a price fall, potentially reaching the support zone at $0.75. Currently, the price action displays a bearish engulfing candle of 4.62% breaking the support zone with the daily candle gaining momentum to give bearish follow-through.
Furthermore, the downtrend after reversing from the 200-day EMA also breaks under the 50 and 100-day EMA. Hence, the Polygon prices reflect an increase in selling pressure. The trading volume supports the breakout candle, solidifying the bearish sentiment and teasing a drop to $0.75.
If the bearish momentum increases when the MATIC prices hit the $0.75 mark, the support zone fallout possibility will increase drastically. The fallout rally can result in a drop to the next support level at $0.57. However, a bullish reversal in Polygon prices from the $0.75 mark can further prolong the consolidation range below $1.
Technical Indicators
The RSI slope shows a reversal in the nearly overbought zone falling below the halfway line and the 14-day SMA. Hence, the indicator reflects a weakness in the underlying bullishness. Moreover, the MACD and signal lines give a bearish crossover, with the trendline fallout increasing the bearish pressure. As a result, the MATIC technical analysis forecasts an upcoming bearish trend.
Resistance Levels - $0.90 and $1
Support Levels - $0.75 and $0.57
