In the last 24 hours, the Polygon (MATIC) price has been in a downtrend, as indicated by the consistent lower highs and lower lows, starting at $0.7282. After a period of decline, the price begins to consolidate and forms what appears to be a support level around the $0.71 mark.
Subsequent to this consolidation phase, there was a sharp turnaround, and the price rallied significantly, moving into a clear uptrend, marked by higher highs and higher lows and surpassing the initial starting point of $0.7282. During the rally, a resistance level can be anticipated near the recent high at approximately $0.74, where the price level has paused, which might suggest selling pressure that could potentially lead to either a price correction or consolidation.
MATIC/USD 24-hour price chart (source: CoinMarketCap)
If the price breaks above this resistance level with significant volume and closes above it, the resistance level could become a new support level, indicating a potential continuation of the rally. Given the upward trend shown on the right side of the chart, if the price maintains its higher low pattern and breaks past the resistance, this could indicate a potential trend reversal from the initial downtrend to an uptrend. On the other hand, if the price fails to break the resistance, it might fall back to test the support level at $0.71 again.
MATICUSD Technical Analysis
The 4-hour chart of MATICUSD showcases key technical indicators driving market sentiment. The Alligator Indicator indicates a consolidation phase, with intertwined lines suggesting a lack of clear direction.
However, potential support is identified around $0.710, coinciding with the position of the Alligator’s lips (green line), indicating a possible floor for the price. Resistance is marked at the 0.236 Fibonacci level ($0.738), with subsequent levels at $0.766 and $0.794, suggesting hurdles for further upside movement.
MATIC/USD 4-hour price chart (source: TradingView)
The Money Flow Index (MFI) remains neutral, reflecting a balance between buying and selling pressures. Nonetheless, traders are eyeing a potential upward movement, as evidenced by the application of the Fibonacci Retracement tool from a recent low to high swing. A breakout above the immediate Fibonacci resistance level, coupled with an uptick in MFI, could signal a bullish trend reversal.
In contrast, a different scenario with the Bollinger Bands Width (BBW), Chaikin Money Flow (CMF), and Rate of Change (ROC) indicators has been highlighted. The BBW sits at 0.14, indicating low volatility and a tight trading range. Although the positive CMF at 0.25 suggests dominant buying pressure, the ROC at 0.14 signifies minimal momentum in either direction, portraying a stable price movement.
MATIC/USD 4-hour price chart (source: TradingView)
Support and resistance levels are inferred from the price action, with tentative levels identified around the lows and peaks, respectively. However, the overall price action appears flat, indicating a sideways trading pattern. To anticipate a potential rally, traders would monitor the CMF for consistent buying pressure, a rise in BBW to signify expanding volatility, and an upward movement in ROC to indicate increasing momentum.
