In response to the overall downtrend in the crypto market, the Polygon coin price restricted its bullish growth and walked a sideways trend for the past six months. However, during this consolidation, the price rebounded from the $0.76 support multiple times, validating this level as a high accumulation zone. Therefore, using the aforementioned level as a base support, the MATIC price shows the formation of a double bottom pattern. This pattern formation accentuates the price sustainability above a specific horizontal level and replenishes the bullish momentum for potential price recovery.
Amidst the recent new year recovery in the crypto market, the MATIC price rebounded from the $0.76 support and surged 14.6% higher. By press time, this altcoin traded at the $0.85 mark and showed a power struggle to break the $0.87 barrier.
Thus, a possible post-rally pullback may tumble the prices by 4% down to $0.816 local support. However, under the influence of a bullish reversal pattern, the MATIC price should witness a sustained rally to the $0.95 mark.
The $0.95 is the neckline of the mentioned pattern, and its breakout will intensify the bullish momentum. As per the technical setup, the post-breakout rally travels the same distance as the length between the base support and neckline, shot from the breakout points.
Therefore, a breakout from the $0.95 barrier will drive the MATIC price 35% higher to reach the $1.15 mark.
Conversely, a breakdown from the $0.816 support invalidates the bullish thesis.
Technical Indicators
Bollinger Band: the MATIC price hitting the upper band of this indicator suggests aggressive buying activity in a relatively short period. Thus, the indicator encourages a possible pullback before the price resume the bullish pattern.
MACD: The increasing gap between the MACD and a signal line in bullish alignment indicates improving market sentiments.
MATIC Coin Price Intraday Levels
- Spot rate: $0.84
- Trend: Bearish
- Volatility: Low
- Resistance levels- $0.87 and $0.95
- Support levels- $0.81 and $0.757
Source : coingape
