MATIC Price Analysis: The Rising Parallel Channel Pattern Hints At Another 25% Correction In This Rally

By Brian Bollinger
December 10, 2021 Updated December 10, 2021
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MATIC Price Analysis: Polygon Bulls Ready To Knockout All-Time High Resistance of $2.5

The MATIC coin price action respects the levels of a rising parallel channel pattern. After rejecting from the overhead resistance of the pattern, the coin should travel to the bottom support trendline projecting a 25% fall ahead. However, the Polygon team shared a positive announcement regarding the acquisition of a start-up company Predictable Labs, in a staggering $500 million deal.

Key technical points:

  • The MATIC price obtains strong support from the 100-day EMA 
  • The daily RSi chart shows a clear bearish divergence concerning the coins price action
  • The intraday trading volume in the MATIC coin is $3.37 Billion, indicating a 6.7% loss

TradingView Chart

Source- MATIC/USD chart by Tradingview

The last time when we covered the MATIC/USD, the coin price fairly survived the blood bath of December 4th and, in return, indicated the presence of intense demand pressure with a long lower price rejection candle. Thus, this resulted in price retesting the overhead resistance of the ascending trendline.

Furthermore, the price faced strong rejection from this level, displayed by a long bearish engulfing candle. A rejection from the top resistance of this pattern should lead the price to the bottom trendline, which is 25% below. 

The MATIC coin price maintains bullish sentiment due to the bullish alignment of the crucial EMA levels(20, 50, 100, and 200). Moreover, the 100 EMA line provides strong support for the coin price.

The Relative Strength Index(57) shows a bearish divergence in its chart, indicating weakness among the market sellers.

MATIC/USD 4-hour Time Frame Chart

TradingView Chart

Source- MATIC/USD chart by Tradingview

After rejecting from the above resistance, the MATIC coin price breached the first support level of the $2.2 mark. The coin price is currently trying to retest this new resistance, which will better confirm whether the breakdown and reversal are genuine.                                                       

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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