February 7, 2023


Disclaimer: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

Over the course of nearly two months, polygon [MATIC] The bulls were in the lead as they established the altcoin position after the 20/50 EMA. This recovery started a critical bullish cross on the 20 EMA (red) and the 50 EMA (cyan).

The breach of the four-month trend line support (former resistance) gave the bulls enough firepower to retest the $0.95 ceiling. A masked close below the pattern may expose the cryptocurrency to a downside in the near term in the upcoming sessions.

At press time, MATIC is trading at $0.908, down 2.34% in the past 24 hours.

MATIC Daily Chart

Source: TradingView, MATIC / USDT

The trajectory of the continuous ascending (white) channel revealed the latent rise in upward pressure. As a result, the outlook is starting to shift a bit in favor of the bulls.

Unfortunately, with the 200 EMA resistance coinciding with the $1.04-$0.95 resistance range, MATIC could see a strong hurdle in the upcoming sessions.

On the flip side, experimental bullish crosses on the 20/50 EMA have secured near-term support in the 20 EMA region. Therefore, the alternative could continue to pressure in the $0.74-1 range before sticking to the trend.

A drop below the ascending channel may trigger a near-term decline towards the $0.74 level before a possible reversal occurs. The final close above the $1.04 level could test the upper trendline of the ascending channel before pulling back.

Logic

Source: TradingView, MATIC / USDT

The Relative Strength Index (RSI) confirmed its position above its mid-line to portray a slight buying advantage. Steady position above the 58 mark support level may continue to support buying sentiment in the near term.

Moreover, the drop in Chaikin Funds Flow (CMF) below zero highlighted the selling advantage. However, it has made lower lows over the past two weeks and diverged upwards with price action.

The Volume Oscillator (VO) has been in a sharp downtrend as volumes have fallen sharply over the past few days. A possible rise in volumes can help move away from the phase of lower volatility.

conclusion

The effect of MATIC above the 20/50 EMA bands reflects a bullish advantage in the near term. A bounce from the lower trend line of the ascending channel may encourage an uptrend before pulling back.

However, a dip below this reversal pattern could lead to a short term decline. The objectives will remain as discussed above.

Finally, investors/traders should keep a close eye on Bitcoin’s movement as MATIC shares an astounding 86% 30-day correlation with the King’s coin.



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