Polygon Price Analysis: MATIC Seeks Upside Toward $2.0 After 39% Declines
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MATIC price extends the previous day’s gains. However, the upside is capped near $1.70. The Head & Shoulder pattern resulted in a 40% decline. Now, investors are advancing toward the horizontal resistance line at $1.80.
- MATIC price is trading higher on Friday with more than 5% gains.
- Expect further upside if the price gives decisive break above $1.80.
- Head & Shoulder pattern completes around $1.50.
At the time of writing, MATIC is trading at $1.64 with a 24-hour trading volume of $900,684,761 with a 6% rise.
Polygon seeks 36% upside from current levels
On the daily chart, MATIC has flipped the resistance-turned-support line after breaking the neckline of the ‘Head & Shoulder’ pattern on January 19. The price is already below the 50 DMA at $2.27.
The price tested an all-time high at $2.92 on December 27. However, it could not sustain there and started the downside momentum. MATIC paused the fall near the $1.50 demand zone. The price consolidated there for two weeks.
Next, price action will depend on how the price will move out of the $1.40 and $1.80 trading range.
The “Head and Shoulder “ formation is a bearish technical formation that resulted in the free fall on January 19 and devaluated 40% in four days.
The Daily Relative Strength Index (RSI) trades at 40 after being recovered from the oversold zone since January 22. Any uptick in the indicator would push the price higher to test the upper line of the consolidation range.
Investors can next bet on the $2.0 psychological level followed by the testing of the neckline of the H&S pattern that stands at $2.33.
On the flip side, a failure to hold the lower line of the channel will drag the price toward the $1.20 horizontal support level
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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