Polygon Price Analysis: Channel Pattern Fakeout Triggers Buying Opportunity In MATIC Coin

The technical chart indicates the overall trend for Polygon coins is still bullish. Even though the price has recently given a breakdown from the broadening channel pattern, the underlying bullishness in the coin pushed the price above the breakout point, resulting in a bear trap. The new rally shows a V-shaped recovery preparing to knock out higher resistance levels.

Key technical points: 

• The MATIC coin price challenges a strong resistance level of $2.43
• The daily-MACD indicator shows its lines are on the verge of a bullish crossover
• The intraday trading volume in the MATIC coin is $1.21 Billion, indicating a 9.275% fall.

Source- Tradingview

In our previous coverage of Polygon technical analysis, the coin price ascending broadening channel pattern of the daily time frame chart. On January 7th, the price provided a fallout from this pattern, offering an excellent short opportunity for crypto traders.

However, the price could sustain below this level, as confluence support from the 100-day EMA and $1.9 horizontal line brought sufficient demand and pushed the price back above the rising trendline.

The MATIC coin price trading above the crucial EMAs(20, 50, 100, and 200), reclaiming its bullish alignment. 

The Moving average convergence divergence shows the MACD and signal are steadily moving towards the neutral zone from above. However, this recent price jump decreases hints at a bullish crossover among these lines.

MATIC Price Challenges Another Higher Resistance Level

Source-Tradingview

The MATIC price has pumped 26.8% in just three trading days. This V-shaped recovery in price is currently at the doorstep of another resistance of $2.43, preparing for a bullish breakout. However, in case the price rejects from this resistance, the support trendline and $2.4 can still maintain a bullish sentiment.

The falling slope of the average directional movement index(34) indicates the decreasing bearish momentum. 

The traditional pivot suggests the important resistance levels for MATIC price is at $2.4, followed by a $2.84 horizontal level in the 4-hour chart. Meanwhile, the support levels are $2.2 and $1.8.