- MATIC value holds topside pattern line throughout a day of widespread promoting within the cryptocurrency advanced.
- Polygon weekly Relative Energy Index (RSI) index nonetheless exhibits an excessive overbought situation.
- Digital token ranks because the seventeenth largest cryptocurrency by market capitalization.
MATIC value is on tempo to shut with consecutive inside days on the bar chart, solidifying the rebound above the topside pattern line. Polygon will see spurts of shopping for and promoting strain, however it’s essential to carry key help ranges on a every day and weekly closing foundation. For now, the upside is restricted, however the digital token is technically well-positioned to steer the crypto market increased within the months forward.
MATIC value consolidation hides new alternatives
MATIC value sustained a big intra-day collapse on Might 19, however the altcoin rebounded from a 60% loss to shut with a 33% loss. The decline ended the super rally for Polygon from April 26 to Might 19, nevertheless it does not alter the underlying fundamental momentum behind the Ethereum scaling resolution.
The energy of MATIC value is seen on the every day chart as Polygon didn’t even contact the 50-day easy shifting common (SMA) on the peak of the promoting; as a substitute, it held the April 30 consolidation excessive at $1.02 earlier than closing above the tactically vital topside pattern line. Furthermore, Polygon bottomed earlier than the 50% retracement of the April-Might advance at $0.91.
The sell-off did alleviate the overbought situation on the every day RSI. Nonetheless, the weekly RSI has barely budged from excessive ranges, suggesting that new highs for MATIC value may very well be restricted till the RSI declines under overbought ranges.
MATIC value is an outlier in technical positioning. Nonetheless, the short-term outlook is impartial till the broader weak spot within the crypto market subsides, and bellwether digital tokens formalize superior help ranges.
Upside momentum could also be restricted to the 261.8% Fibonacci extension of the early Might correction at $1.99 on a every day closing foundation. A bountiful rally for cryptocurrencies may launch MATIC value to the all-time excessive at $2.89 in a short time, securing its place because the chief.
MATIC/USD every day chart
Present market situations stay tenuous in the mean time, and renewed promoting strain may emerge. A every day shut under the topside pattern line can be the primary sign that MATIC value may take a look at the Might 19 low at $1.01 and probably fall to the 50% retracement. Heavy promoting may drive Polygon right down to the 50-day SMA at $0.76 earlier than a agency low is established.
In a fluid investing surroundings, traders ought to goal relative energy leaders equivalent to Polygon and use the technical ranges talked about above to commerce in opposition to.