MATIC Technical Analysis: Will Polygon Prices Explode Above $1?
Table of contents
Key technical points:
Past Performance of MATIC
As warned in our previous article, the MATIC prices continue the downtrend to reach the crucial support of $0.75 near the 100-day SMA. The declining trend forms a falling channel, but the price action depicts a flag pattern, as the 75% jump during the third week of July acts as the flag pole. Moreover, the lower price rejection candles tease a potential bullish reversal with a morning star pattern.
Source- Tradingview
MATIC Technical Analysis
The declining trend during the retracement in the MATIC prices increases the possibility of a bullish reversal and the prevailing trend continuation. The flag pattern breakout rally will unleash the trapped bullish momentum and result in a high momentum uptrend.
The 100-day SEMA is actively assisting the uptrend giving it the bullish launchpad during the recent pullback. Additionally, the altcoin will fight the overhead resistance of the 200-day SMA; meanwhile, the growing bullish influence over the 50-day SMA leads to a positive turnaround.
The bearish crossover of the slow and fast slopes opposes the possibility of a bullish turnaround. If, however, the MACD indicator regains the positive alignment, traders can expect the uptrend to create a new higher high above $1.
In a nutshell, the technical indicators have opposing viewpoints, but the MATIC price analysis supports the bullish reversal ideology.
Upcoming Trend
A potential upside breakout of $1 will offer an entry point for traders with bullish intent. The likely bullish rally could increase the MATIC price by 45% to the $1.18 mark. In the opposite direction, the break of an extended support trendline will invalidate the bullish thesis and trigger a decline to $0.57 or, in a less favorable situation, $0.50.
Resistance Levels: $1.66 and $1.8
Support Levels: $1.5 and $1.43