Polygon Analysis: Can MATIC Overcome the Downtrend?
The recent surge in the cryptocurrency market has delighted many investors. However, amidst this optimism, Bitcoin’s downward trend has been a cause for concern, especially its struggle to sustain above the $35,000 level. This situation raises questions about the beloved Polygon sector and its future amidst these developments.
Polygon Chart Analysis
On the daily chart of MATIC, a descending wedge pattern has emerged. This pattern, occurring after a decline, typically raises concerns in traditional market investments. The recent rejection from both the wedge resistance and the EMA 200 level after a brief rise signals potential challenges for MATIC. Key support levels on the daily chart include $0.6377, $0.06009, and $0.5718. If the daily bar closes below $0.06009, the price might drop below the EMA 7 and EMA 21 averages, leading to a support touch.
Resistant levels to watch on the daily chart are: $0.6921, $0.7346, and $0.7816. A daily bar closure above $0.6921, intersecting with the EMA 200 (red line), could initiate an upward trend, providing momentum to MATIC’s rise.
Polygon Two-Hour Chart Analysis
Examining the two-hour chart, a narrowing wedge formation is evident. MATIC successfully broke above the resistance line, and the formation resistance now acts as a support, a crucial factor contributing to the price’s strength.
Support levels on the two-hour chart include: $0.6557, $0.6480, and $0.6417. A bar closure below $0.6557 may lead to a short-term decline, pulling the price back into the formation zone.
Resistant levels to monitor on the two-hour chart are: $0.6686, $0.6741, and $0.6827. A bar closure above $0.6827, distinguished by a double top in the recent rise, could bolster MATIC’s upward movement.