Polygon Price Analysis: Supply Pressure Tends To Keep MATIC Within Triangle
The Polygon(MATIC) has been stuck within a descending triangle pattern for more than three weeks now. The recent bullish recovery from neckline support has surged the altcoin by 8.5% as it hit the resistance trendline. However, the long-wick rejection attached to daily indicates the resumption of the consolidating phase.
Key points
- The MATIC/USDT chart shows the morning star candle forming in the weekly time frame chart
- The MATIC buyers struggle to surpass the overhead resistance trendline, suggest
- The intraday trading volume in MATIC is $1.67 Billion, indicating a 136.5% gain.
Source- Tradingview
During the first four months of 2022, the MATIC buyers had mounted stiff support at the $1.3 mark. However, the lower high formation in price reflected the loss of bullish momentum, which eventually led to support fallout.
A deceive breakdown from $1.3 support triggered a massive sell-off and plunged the MATIC price to a low of $0.508. The downfall discounted the altcoin by 55.5% before starting to walk a sideways path.
Now the MATIC price shows sustainability above the $0.566 support, but like previously, the lower high waves threaten a bearish breakdown.
If sellers breach the bottom support($0.566), the coin price may drop 20% lower to the $0.45 mark.
However, an expected yet possible breakout from the pattern’s resistance trendline may trigger a relief rally and pump the altcoin 42% higher to $0.9 resistance.
Technical Indicators
The Bollinger band indicator squeezed up accentuates the uncertainty among the market participants. Moreover, the indicator’s band levels aligned with trigger levels of the pattern provide additional confirmation b for the upcoming breakout.
The MACD indicator fast and slow line rallying opposite to declining price indicates growth in underlying bullishness. Moreover, this positive divergence hints at an upside breakout from the triangle pattern.
- Resistance levels- $1 and $1.18
- Support levels- $0.8 and $0.67
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