How MATIC buyers can leverage this strategy to remain profitable
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Over the last three months, Polygon [MATIC] bulls restored their edge from the 14-month support at the $0.34-level. The resulting buying comeback propelled a bullish pattern that aided MATIC in retesting the 200 EMA (green).
The altcoin has now entered a critical level in the $0.7-$0.76 range. MATIC could likely see a dull phase given the confluence of resistances in the $0.76 zone. At press time, MATIC was trading at $0.7551.
Source: TradingView, MATIC/USDT
The previous ascending channel breakout growth aided MATIC bulls to breach the $0.7-$0.76 range and flip it to support. Since then, this range has supported MATIC’s retracement over the last month.
After reversing from the 200 EMA resistance barrier, the coin has been struggling to pull off a robust buying rally. After a brief down-channel oscillation, the 20 EMA (red) dropped below the 50 EMA (cyan) to depict a selling edge.
With these EMAs still looking south, the sellers could aim to restrict the buying rallies in the $0.79-$0.81 range. A close below the $0.7-mark would position the coin for a near-term downside. In this case, the potential target would lie in the $0.607 region.
An eventual close below the $0.81-mark can provoke a bearish invalidation. The bulls must ramp up the buying volumes to sustain a close above the immediate resistance range. In these circumstances, the buyers would look to retest the 200 EMA before a likely reversal.
Source: TradingView, MATIC/USDT
The Relative Strength Index (RSI) marked some improvements as it eyed to test its equilibrium. A close beyond the 50-mark resistance would confirm a change in momentum.
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