Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
In almost two months, Polygon [MATIC] Bulls were at the forefront as they established the altcoin’s position after the 20/50 EMA. This recovery led to a critical bullish crossover on the 20 EMA (red) and the 50 EMA (cyan).
The breach of the four-month trendline support (previous resistance) gave the bulls enough firepower to retest the $0.95 ceiling. A convincing close below the pattern could expose crypto to a short-term downward spiral in the coming sessions.
As of going to press, MATIC was trading at $0.908, down 2.34% in the past 24 hours.
MATIC daily chart
Source: TradingView, MATIC/USDT
The ongoing ascending channel (white) trajectory revealed the underlying rise in bullish pressure. As a result, the broader outlook started to shift slightly in favor of the bulls.
Unfortunately, with the 200 EMA resistance coinciding with the $1.04-$0.95 resistance, MATIC could see a solid hurdle in the coming sessions.
On the downside, empirical bullish crossovers on the 20/50 EMA have provided short-term support in the 20 EMA zone. So the alt could continue its compression in the $0.74-$1 range before committing to a trend.
A decline below the upside channel could cause a decline towards the USD 0.74 level in the near term before a likely reversal occurs. Any close above the $1.04 level could trigger a test of the up channel’s upper trendline before a pullback occurs.
rode
Source: TradingView, MATIC/USDT
The Relative Strength Index (RSI) secured its position above the midline to reflect a slight buying advantage. A sustained position above the 58-mark support could continue to support near-term buying intentions.
In addition, the drop in Chaikin Money Flow (CMF) below zero indicated a selling advantage. Still, for the past two weeks, it marked lower dips and diverged bullishly with price action.
The Volume Oscillator (VO) has been in a steep downtrend as trading volumes have taken a sharp plunge in recent days. A possible rise in volumes could help the alt move out of its low volatility phase.
Conclusion
MATIC’s rule above its 20/50 EMA ribbons reflected a near-term bullish advantage. A rebound from the lower trendline of the up channel could encourage a bull run for a pullback.
However, a decline below this reversal pattern may result in a short-term decline. The goals remain the same as discussed above.
Finally, investors/traders should keep a close eye on Bitcoin’s movement as MATIC shares a staggering 86% 30-day correlation with the king coin.