https://ift.tt/3GzKXGx Price Analysis: Ongoing MATIC Correction Is “Buy The Dip” Opportunity, Here’s Why

The short term MATIC price analysis showcases a correction phase in action. However, a bullish pattern in the 4-hour chart highlights the possibility of a bullish reversal. Nonetheless, traders must stay cautious in taking a side before the fruition of the pattern to avoid any traps in the chart.

Key technical points: 

• The MATIC price struggles to rise above the 20-day DMA
• The selling pressure increases as the price hints at an evening star pattern formation
• The intraday trading volume in the MATIC coin is $1.21 Billion, indicating a 9.275% fall.

Source- Tradingview

The MATIC price rose to the $2.5 resistance level after finding demand at the confluence of $2 level and the support trendline. However, the price action shows an evening star candle pattern justifying a 4% rejection from a high selling pressure area.

The support trendline maintains an uptrend resulting in the price jump of 20% from its inception. Therefore, the possible retracement can halt near the trendline. 

Moreover, the 20-day DMA acts as a dynamic resistance keeping the recent bullish attack in check. However, the constant support from the 100-day DMA helps to carry an uptrend in action. 

The Moving average convergence divergence shows a free fall in the MACD and signal lines in the daily chart. However, the falling distribution in the bearish histograms indicates a fall in underlying bearishness.

MATIC Price Action Hints Bullish Pattern Breakout

Source-Tradingview

The MATIC price action forms a cup and handle pattern in the 4-hour chart. The neckline of the pattern is at the horizontal level of $2.40. Therefore, a price jump above the neckline will initiate a new bull run.

The decrease in trading volume during the handle formation of the pattern reflects trapping of momentum. Therefore, a breakout of either side will unleash the trapped momentum, and lead to a strong directional move.

The price action suggests the crucial high supply levels for MATIC price is at $2.84 following the neckline at $2.4 in the 4-hour chart. Meanwhile, the demand levels are at $2.2 and $1.8.