Polygon’s MATIC secured renewed buying momentum within the previous months as bulls inflicted several green candlesticks on the daily price chart. This trend-shifting comeback saw buyers propelling the altcoin beyond the Exponential Moving Average ribbons.
Bulls reclaimed crucial support floors following a much-need move from an ascending triangle breakout. Sustained efforts by bulls might support buyers to breach the resistance at $0.95 in the upcoming sessions. While publishing this post, MATIC traded at $0.9446, gaining 1.7% within the past 24 hours.
MATIC Daily Timeframe
Polygon’s downward period comprised a 2-month plunge that led to a more than 81% decrease from April 1 on the price chart. Meanwhile, buyers regained their strength at $0.32, following gradual sentiment improvement.
This reversal cleared the path for upside break beyond the northbound Exponential Moving Average ribbons. The ribbons resorted to an optimistic flip after about six months. Historically, these flips have formed short-term support around the 20 Exponential Moving Average territory.
Possible reversals from resistance at $0.95 might secure a bounce background at the $0.78 – $0.81 value area. An ultimate break of the nearest resistance might open the gate for MATIC’s retest of $1.1 in the upcoming days. Bears should ensure a closing beneath $0.72 to annul these short-term bullish narratives.
Reasoning
The RSI (Relative Strength Indicator) gradually dropped from the overbought territory. Meanwhile, steadying beyond the support at 58 might continue backing buying endeavors in the near term. Moreover, the AO (Awesome Oscillator) placed itself conveniently beyond the equilibrium, revealing steady buying pressure.
However, the OBV (on-balance volume) formed higher highs within the past two weeks as the price actions continued to slam the resistance at $0.95. Such developments suggested a trivial bearish divergence.
Final Thought
MATIC’s position beyond its northbound Exponential Moving Average ribbons has bolstered the bullish case. Meanwhile. OBV threats might lead to some setups/ targets would stay as highlighted above. Lastly, investors should watch BTC’s actions as MATIC boasts a whopping 90% monthly correlation with the bellwether crypto.
While publishing this post, BTC changed hands at $23,759.64, staying relatively flat within the past 24 hours. Uptrends past resistance at $24.5K to explore $26K would trigger stable near-term bullishness in the marketplace.
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