Polyon [MATIC] buyers can deploy this strategy to stay profitable
Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
Recently, Polygon [MATIC] the bulls found renewed pressure from its $0.74 range support at $0.76. This resurgence, however, led to a reversal pattern, the breakdown of which found support in the $0.8 region.
The altcoin has now entered its compression range near the point of control (POC, red) at the $0.9 area. MATIC could likely see a dull phase before a plausible volatile break in the coming sessions.
At press time, MATIC was trading at $0.9052, up 1.23% in the past 24 hours.
MATIC daily chart
The previous growth of the ascending channel (white) helped MATIC bulls break through the Range of $0.74 to $0.76 and turn it over to support. Since then, this range has supported MATIC’s retracement over the past month.
After a bearish pennant structure on the daily chart, the coin experienced a short-term setback. But the bulls were quick to fight back from the $0.8 base line. Buyers are now looking to retest the $0.93 resistance.
As the price action sailed near the POC, MATIC could likely enter a slow phase in the Range of $0.88 to $0.93 in future sessions. With the 20 EMA (red) still looking north and maintaining its position above the 50 EMA (cyan), buyers may aim to continue the gradual recovery in the near term.
A close above $0.93 would position the coin higher and hint at a buy signal. In this case, the potential target would be in the region of $1.04.
A possible close below the $0.88 support may cause a short-term decline towards its long-term support range. Bulls need to increase buying volumes to maintain a close above the immediate resistance range.
The Relative Strength Index (RSI) jumped above the midline to portray increased buying advantage. A close past the 58 point resistance would reaffirm the press time bias.
Moreover, the Chaikin Money Flow’s (CMF) position above the zero mark also resonated with bullish strength. But its recent bearish spikes could confirm a slight bearish divergence.
The Awesome Oscillator (AO) closed above the zero level after three weeks and confirmed the increase in purchasing power. Nevertheless, the ADX showed a noticeably weak directional trend for the alt.
MATIC’s hold above the 20/50 EMA and POC showed a slight buying advantage. A fence above the $0.93 resistance could confirm the bullish bias of the press time. The objectives would remain the same as those discussed.
Finally, investors/traders should keep a close eye on Bitcoin’s movement, as MATIC shares a 63% 30-day correlation with the master coin.
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