Polygon (MATIC) made a significant jump, rising 28 percent in one day last week (July 21). It has been on the rise for the last week with solid steps. However, the last 3 days of this rise are struggling with a stiff resistance.
The Matic token has been struggling to break the downtrend (red) that started in May for the past 3 days. Although it seems that this falling trend line was supported on the daily chart, a complete break could not be experienced due to the low daily closings and the hard resistance in front of it. Still, the short-term uptrend (green) that started in the second half of July looks promising.
Daily MATIC/USDT Chart
If we continue our inferences from the daily MATIC/USDT chart; We can see that the closest resistance in front of the altcoin is the 89-day EMA at $1.04. If we measure the downtrend with fibonacci; We can see that the fib 0.236 value also coincides with $1.05. This shows us that the narrow range of 1.04 – 1.05 is an important resistance.
Fib 0.236 can generally be considered as the level where the directional movement starts. On a daily close above this level, MATIC price is likely to target Fib 0.382 at $1.16. The next targets can be followed as 1.53 (fib 0.5) and 1.74 (fib 0.618). 3-month past price movements also show that there are meaningful reactions at these levels.
On the other hand, in a possible downward slide, the support area is formed in the 0.965 – 0.975 band. This area coincides with the intersection of the 8 and 21 EMA values. At the same time, the last one-week uptrend line is currently at $0.9727. In summary, we can say that the Polygon token is safe as long as the day closes on this rising trend line.
A new downtrend is likely to form if MATIC closes below $0.965. In this case, a drop towards $0.82 could come.
3-hour MATIC/USDT Chart
The 3-hour view more clearly reflects the price squeeze. The price of $0.996 for the last 2 days has formed a solid support. Above, a similar resistance line was formed at $1.05.
The low hourly volumes make it difficult for the altcoin price to find a new direction. The key price for the cryptocurrency, which is likely to make a significant breakthrough with the rise in volume, seems to be $ 1.05.
Finally, the current position of the Stochastic RSI could be the catalyst for the uptrend from the lows.
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Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge.