Will Retracement To This 50 EMA Rebound To $1?

Polygon MaticPolygon Matic

Published 1 day ago

The MATIC/USDT pair showcased a U-shaped recovery initiated with a bullish engulfing candle and bounced back from a $0.31 low. This run-up has accounted for a 215% appreciation, as the altcoin reached a high of $0.9774. However, this supply around the $1 mark pressurizes the altcoin for another correction.

Key points

  • A retest to the Bollinger band indicator’s upper band bolsters a pullback to the midline
  • The 100-day EMA flipped to a viable support
  • The intraday trading volume in the MATIC is $1.25 Billion, indicating a 25.3% loss

MATIC/USDT ChartMATIC/USDT ChartSource- –Tradingview

Amid the recent recovery, the Polygon (MATIC) price has last breached the 100-day EMA and $0.75 resistance, providing a higher footing to carry forward this rally. However, in response to profit-booking from short-term trades, the price witnessed an 18.8% pullback, retesting the 100-day EMA.

Even though the MATIC price rebounded from the 100 EMA support with an inside candle, the buyers struggled to follow up this bull run. Thus, a high-wick rejection and a 3% intraday loss suggest the altcoin face high supply pressure from $ mark.

If the selling pressure persists, the coin price may experience a deeper retracement, possibly to the $0.75 to $0.62 mark. However, the expected pullback may provide a dip opportunity to acquire a Polygon (MATIC) again at a discounted price.

The replenished momentum may continue the prevailing recovery, indicating a high possibility for MATIC price to break above the $1 psychological resistance.

Technical Indicators

Relative Strength Index: On July 18th, the RSI slope tagged the overbought neckline accentuated the altcoin has witnessed aggressive buying in a short span. Moreover, a slight bearish divergence in indicators bolsters a minor retracement to stabilize the ongoing rally.

Bollinger band indicator: on July 20th, the MATIC price showed a fake breakout from the above resistance, supporting the pullback theory. However, the indicator midline should bolster buyers in continuing the prevailing recovery.

  • Resistance levels- $0.9 and $1
  • Support levels- $0.75 and $0.63

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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