The MATIC/USD pair closed red during the weekend, retesting the monthly support of $1.4. Under the influence of a bearish H&S pattern, the sellers tease to breach this support and dump the pair to the $1 mark. However, the coin turned green today, and the lower price rejection candle indicates the bulls have not yet surrendered.
Key points:
- H&S pattern governs the Polygon coin
- The daily-RSI bullish divergence hints reversal opportunity
- The intraday trading volume in MATIC is $845.6 Million, indicating a 50% gain.
Source- Tradingview
The MATIC/USD technical chart shows the Head and Shoulder pattern formation in the daily time frame. Completing the pattern’s right shoulder, the altcoin plunged to a $1.4 neckline, preparing for a bearish breakdown.
The January sell-off and the recent geopolitical issue of Russia Ukraine war have halved the MATIC price from its All-Time High($2.92). If sellers pull the altcoin below the $1.4 support, the downtrend would resume and sink the price below the $1 psychological support.
The downsloping 50-DMA performs a death crossover with the 200 DMA, encouraging the sellers to complete the bearish pattern.
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Descending trendline Breakout Could Save MATIC Holders From Another Meltdown.
Source- Tradingview
As the MATIC price retest the $1.4 support, the Relative Strength Index hints at a possible bullish reversal by forming a positive divergence. If buyers succeed in rebounding from this support, the altcoin will challenge the highly influential descending trendline.
The MATIC price action narrowing between the descending trendline and stiff support at $1.40 is poised to break out on either side. The buyers need to breach and sustain above the dynamic resistance to obtain their first sign of recovery.
- Resistance levels- $2 and $2.4
- Support levels- $1.5 and $1.3
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