Short-Term Pullback and Psychological Mark
After experiencing a remarkable 35% bullish trend in just seven days, the MATIC price undergoes a short-term pullback, falling back under $1. This loss of a crucial psychological mark impacts sentiments around Polygon, causing a small dent in the overall uptrend.
With a higher price rejection observed around $1.05, Polygon prices swiftly reverse to retest the broken range at $0.96. The buyers are hopeful for a successful post-retest reversal, keeping the MATIC price prediction optimistic for the upcoming year.
Pullback State and Intraday Performance
Despite high trading volume supporting the seven days of the bull run, the MATIC price reaches the psychological mark of $1. However, the Polygon trend enters a pullback state, with buyers struggling to handle and absorb excessive supply above $1, mainly due to extensive profit booking.
The higher price rejection leads the MATIC price to retest the broken $0.96 range. A fightback from buyers results in lower price rejection in the daily candle, limiting the intraday fall to 1.81% at press time, with the Polygon market value at $0.9855.
Moreover, the lack of trading volume support during the retest phase increases the likelihood of a bullish turnaround, raising the possibility of a morning star formation in the daily chart.
Technical Indicators
- MACD Indicator: Despite the recent correction, the momentum indicator supports the bullish rally, with the MACD and signal lines sustaining a positive alignment. A short dip in the bullish histogram is visible, reflecting a momentary loss in momentum.
- EMA Indicator: The bullish crossover in the 50D EMA and 200D EMA maintains a positive alignment, ready to provide dynamic support.
MATIC Price Recovery and Future Targets
With a retest phase anticipated just before the start of 2024, the MATIC price is poised to launch a high-momentum bull run beyond the $1 mark, providing sideline buyers with a new entry opportunity and a suitable launchpad for higher recovery.
According to the trend-based Fibonacci extension level, potential targets for the MATIC price include $1.20, followed by $1.50.
Conversely, if the retest phase leads to a quick fall below the $0.96 range, selling pressure is expected to intensify, testing the $0.90 mark.
