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.
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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.
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The downsloping 50-DMA performs a death crossover with the 200 DMA, encouraging the sellers to complete the bearish pattern.
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.
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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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