This week saw Polygon MATIC through a break in selling after finding a solid ground level. Following a slight surge today, it currently trades at a key psychological level as it remains trapped in a broadening wedge.
Matic is slowly bouncing back after posting losses for over a week. It recently found solid support at $0.91 and is now slowly footing a fresh increase on the 4-hour timeframe. A double-bottom pattern is already forming.
The current daily candle formation reveals a low trading volume but we can expect a significant price movement if the price closes well above the key psychological $1 level today. But from the look of this, it may witness an ill-gain due to the bearish sentiment surrounding the market.
Notwithstanding, the asset remains technically bullish on the weekly timeframe. The only condition for a bearish reversal lies in a break below the $0.5 level – marked as the bottom during the bear cycle.
Technically, the chances of breakdown to that price level are slim as such a scenario does not look realistic in the current bull cycle. However, the price can still dip to $0.7 if the recent bearish extends.
Despite signalling a buy on the daily chart, Matic’s price remains trapped in a broadening wedge. Failure to resume bullish may lead to another drawdown to the lower boundary of the broadening wedge. After that, we can expect a comeback.
Matic’s Key Levels To Watch
Source: Tradingview
Closing successfully above $1 could allow a buyback to $1.09 and $1.17. The following resistance to watch for a breakout is $1.29 – where it initiated a drop last week.
Losing the weekly holding support of $0.91 could trigger a bearish extension to the lower boundary of the broadening wedge. On the way down, $0.835 and $0.75 are support levels to watch out for.
Key Resistance Levels: $1.09, $1.17, $1.29
Key Support Levels: $0.91, $0.835, $0.75
- Spot Price: $1
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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