Polygon Price Analysis: 20 EMA Resistance Pressurize MATIC for $0.45 Breakdown
Polygon (MATIC) technical chart showed a U-shaped recovery followed by a minor pullback, indicating the formation of the Cup and handle pattern. However, the handle portion of this pattern stalled midway as the coin price struggled to surpass the combined resistance of $0.5 and 20-day EMA. The sustained selling could undermine the bullish reversal pattern.
Key points
- The cup and handle pattern should encourage the MATIC price to hit $0.63
- The $0.45 support fallout would invalidate the bullish thesis
- The intraday trading volume in the MATIC is $846.2 Million, indicating a 3% loss
Source- –Tradingview
The MATIC/USDT recovery rally reverted from $0.63 resistance with an evening star candle. The downfall with seven consecutive red candles, backed by rising volume, indicated strong bearish momentum.
This pullback tumbled the MATIC price by 27.8% and slumped to the $0.453 mark. Furthermore, the altcoin has been hovering above the $0.453 support for the past five days, suggesting the price sustainability above this support.
On July 4th, the MATIC price rebounded from this support and earlier today 7% gain indicates a suitable follow-up. However, the sudden supply pressure in the market reverted the coin price displaying a long-wick rejection.
If the selling momentum carries forward and gives a candle closing below the $0.5 mark, the MATIC price may retest the $0.45 support. However, losing this support could pull the altcoin 285 down to June’s low support of $0.325.
Technical Indicators
RSI indicator: the RSI slopes nosedived below the neutral line, and 20 SMA slopes project the selling momentum persists.
EMAs: the fast-moving 20-day EMA acted as a dynamic resistance since April. Furthermore, with the recent recovery attempt, the MATIC price breached this resistance but couldn’t sustain above it for long. So now, these EMAs again puts additional selling pressure on traders.
MACD indicator: the fast and slow lines drawn together and reducing bar length in the histogram chart indicate loss of bullish momentum. A bearish crossover among these lines could accelerate the selling pressure.
- Resistance levels- $0.57 and $0.63
- Support levels- $0.45 and $0.32
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