Polygon price analysis portrays consolidation at a higher level. The bulls failed to capitalize on the previous session’s gains as the price retreated below the crucial $0.95 mark. The formation of a ‘hammer’ candlestick on the hourly chart frame indicates the buying from the lower levels.
But the overall sentiment remained bearish. As of press time, MATIC/USD is reading at $$0.88, down 5.88% for the day. Further, the 24-hour trading volume gained 8% to $425,260,970 as per CoinMarketCap data. A jump in volume with a decline in price is a bearish sign.
Source: Trading view
On the daily chart, the Polygon price traded in a range-bound manner from May 11 to July 17 while holding below $0.714. On July 18, the price gave a breakout above that range and gave a bullish momentum of up to $0.976.
The price trades along the bullish trend line from the lows of $0.41 since June 30. After making a swing high of $0.98, the price started to consolidate forming a symmetrical formation. Further, MATIC formed a “Double Top” pattern. According to this formation, if the price closes below $0.88, then we can expect a good fall of up to $0.79.
In addition to that, the trading volumes are trading below average for the past 3 weeks, as shown in charts, along with price trading in a range or slightly uptrend.
Polygon price is taking good support near the 20-day exponential moving average. That support is the only thing, that holds MATIC to don’t fall sharply in near future.
The RSI (14) is declining, indicating a probable downside momentum in the asset.
On the one-hour chart, the price fell shortly from the short-term consolidation that extends from $0.92 to $0.88. In today’s session, the price broke below the range for a brief period of time and is attempting to bounce back.
The momentum oscillator, RSI traded near the oversold territory, pointing to a sharp pullback in the price. Closing above $0.89 on an hourly basis could result in testing $0.90.
On the other hand, any downtick in the RSI would amplify the selling toward $0.85.
Source : coingape