The Polygon(MATIC) traders actively selling on a descending trendline tumbled the coin price by 53.5% from the $1.73 high. Last weekend the MATIC price breached $1 physiological support suggesting the sellers are preparing for another leg down. Can the evident bullish divergence on indicators bolster the price to reclaim the $1 mark?
- High volume retest shows strength in bullish momentum
- The daily-stochastic RSI hints potential bullish crossover
- The intraday trading volume in MATIC is $1.67 Billion, indicating a 136.5% gain.
On April 26th, the ongoing sell-off in the crypto market made MATIC price lose multi-month support of $1.35. Furthermore, the accelerated selling continued the bear attack at full throttle and knocked out more support levels such as $1.2 and $1.
The post retest fall depreciated the MATIC price by 39% as it reached the current low of $0.8. Anyhow, the altcoin has recently breached the $1 psychological support on May 8th, suggesting further correction in the price
Today the MATIC price experienced a sudden pump of 20% and retested the breached $1 support. If sellers hold the coin price below the $1 and the highly influential resistance trendline, the traders can expect a free fall to the $0.68 mark.
On a contrary note, an unexpected rise in bullish momentum could breach the falling resistance and ignite a recovery opportunity. The potential rally would surge the coin price to the $1.4 mark, reflecting 44% growth.
A bearish sequence of the falling DMAs(20, 50, 100, 200) reflects an overall bear trend. These DMAs give additional hurdles for a potential rally.
The long bullish divergence on the stochastic RSI chart suggests rising bullish momentum. Moreover, the K and D line nearing a bullish crossover encourages additional buying.
- Resistance levels- $1 and $1.18
- Support levels- $0.8 and $0.67
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.