Earlier today, the polygon coin price showcased a 6% jump and tested the combined resistance of the downsloping trendline and 100-day EMA. However, as buyers were unable to sustain this rally, the daily candle with long-higher price rejection shows a strong possibility for a bearish reversal. But, should you fear this correction?
Following the June-August rally, the polygon coin price correction revealed the formation of a flag pattern. In theory, this bullish pattern offers a short break period for the price to sustain the prior growth.
Moreover, the series of lower highs with decreasing volume indicates this retracement is temporary, and so far, it has push the altcoin to a low of 50% retracement level at $0.7. However, the Polygon coin price currently trades at $0.798 and retests the pattern’s resistance trendline.
The higher price rejection candle at this resistance indicates a higher possibility for price reversal. Thus, a potential bear cycle could drop below the $0.7 support and witness prolonged correction.
However, the very nature of this pattern offers a strong bullish rally, and the interested buyers must wait for the price to break the overhead trendline. Doing so will reflect that the buyers are ready to resume the previous bull run.
As per the technical setup, this pattern completion should push the prices above the $1 psychological mark.
EMAs: the flattish EMAs (20, 50, and 100) accumulated near $0.8 as potential resistance increasing the reversal possibility.
Relative strength index: despite a falling price action, the daily-RSI shows a sideways walk indicating weakness in bearish momentum. However, the indicator slope currently below the 50% mark reflects the fear among market participants.
Polygon Coin Price Intraday Levels
Spot rate: $0.736
Resistance levels- $0.85 and $0.94
Support levels- $0.76 and $0.7
Source : Coingape