The past three months saw Polygon bulls restoring their dominance from 14-month support at $0.34. Meanwhile, the resulting buying resurge catalyzed a bullish setup that supported MATIC to retest the 200 Exponential Moving Average.
The alt has dipped into a critical level at $0.7 – $0.76. MATIC might experience a dull period due to the resistance confluence at $0.76. While publishing this blog, the alternative token changed hands at $0.7551.
Polygon Daily Timeframe
The previous climbing channel breakout upsurge nurtured MATIC bulls to flip the $0.7 – $0.76 value area into support. Meanwhile, this territory has supported Polygon’s retracement within the previous month.
The alternative token has struggled to catalyze a massive bull run since reversing from the resistance barrier at 200 Exponential Moving Average. The 20EMA declined beneath the 50EMA after oscillating in a downward channel, depicting a selling superiority.
While these Exponential Moving Averages remain northbound, sellers might target to limit buying efforts at the $0.79 – $0.81 mark. A closing beneath $0.7 would open the road for near-term declines. Such tendencies would have potential targets at the $0.607-mark.
An ultimate closing beyond the $0.81 zone might trigger bearish invalidations. Bulls should confirm surged buying volumes to ensure a close beyond the nearest resistance area. That would see buyers looking for a 200EMA retest before a potential reversal.
Reasoning
The RSI (Relative Strength Index) recorded some improvements, targeting to hit its equilibrium. A closing past the 50-resistance would affirm a momentum shift. Moreover, the CMF (Chaikin Money Flow) remained beyond zero, resonating with the amplifying bullish momentum.
However, the Moving Average Convergence Divergence was yet to assume a bullish cross. Buyers should watch for this cross before executing long positions.
Final Thought
Polygon’s spot beneath the 20-50-200 Exponential Moving Average had indicated a broad bearish superiority. A dip beneath the baseline at $0.7 would trigger short-term bearishness. Meanwhile, a closing beyond $0.81 would confirm a short-term bearish invalidation.
Potential targets would stay as highlighted above. Lastly, traders should watch BTC’s movement as Polygon shares a massive 78% monthly correlation with Bitcoin. Time will reveal the upcoming tendencies would have.
