MATIC Price Revisits Key $0.5 Support: A Turning Point or Caution Zone?

In the daily timeframe, the MATIC price reveals a narrative of resilience amid prevailing bearish undertones. After a period of descent, the coin’s trajectory appears to be stabilizing, finding substantial buying pressure around the key $0.5 support. This rising demand is validated by an ascending trendline linking two higher lows, giving rise to a symmetrical triangle pattern. This technical formation typically acts as a crucible for future price movements, making it a potent tool for traders.

Also Read: MATIC Price Prediction As Polygon 2.0 Prepares To Come To Life – Breakout In The Offing?

Triangle Pattern Threatens Prolong Correction 

• In response to triangle pattern formation, the MATIC price prolongs sideways action
• Demand pressure at the support trendline hints at a 10% upswing ahead
• The intraday trading volume of the MATIC coin is $226 Million, showing a 13% loss.

Source- Tradingview

Over the past seven weeks, the polygon coin price dynamics have been largely dominated by the triangle pattern, rebounding from the upper boundary twice and the lower one thrice. Currently trading at $0.51, the polygon coin has once again demonstrated demand pressure by bouncing off the lower trendline with the formation of a long-tail rejection candle. 

Under the influence of this pattern, the newfound demand pressure may lead to a 10% ascent to challenge the upper boundary. Nevertheless, as the constricting boundaries of the triangle remain unbreached, a continuation of the sideways momentum is likely, casting a shadow of uncertainty. 

Traditionally, the symmetrical triangle tends to favor the trend leading into its formation, which, in the current case, is bearish. This implies a potential downward break, breaching the triangle’s lower trendline and the critical $0.5 psychological support. 

Should the bears cement their hold with a decisive daily candle close below the pattern, it might catalyze a more profound 18% dip, targeting the $0.422 zone.

[converter id=”matic-polygon” url=”https://coingape.com/price/converter/polygon-to-usd/?amount=1″]

Is MATIC Price Ready for a Recovery Trend?

While the short-term projection for MATIC price seems sideways to bearish, a possible breakout from the pattern’s upper trendline could change the market sentiment. This breakout will provide buyers with support to lead a price rally to a combined resistance of $0.64 and a long-coming resistance trendline. The ongoing downtrend in the coin can be followed by this trendline and thus, its breakout is crucial for trend change.

• Bollinger Band: A lateral movement in the Bollinger band indicator accentuates a sideways action in play.
• Relative Strength Index: Despite the increasing buying pressure evident by the rising RSI slope, the MATIC price gives a lower high formation indicating that the current bullish momentum isn’t enough.