Polygon (MATIC): This Support Level Might Be Vital to Sustaining Bullishness

Polygon bulls have remained in the driver’s seat for approximately two months as they ensured the token’s spot above the 20-50 Exponential Moving Average. Meanwhile, this recovery established a crucial bullish cross on the 20 Exponential Moving Average and the 50 Exponential Moving Average.

Breaching the 4-month trend-line support gave MATIC bulls enough strength to retest the ceiling at $0.95. A decisive closing beneath the pattern might expose Polygon to short-term declines in the upcoming sessions. While publishing this post, the altcoin changed hands at $0.908, following a slight loss within the past 24 hours.

Polygon Daily Timeframe

The present ascending channel trajectory confirmed the underlying bullish momentum surge. Consequently, the broad picture started to (slightly) shift in the bulls’ favor. Nevertheless, MATIC might witness a challenging obstacle within the upcoming sessions as the 20 Exponential Moving Average resistance coincides with the range resistance at $1.04 – $0.95.

On the other side, empirical bullish crosses on the 20-50 Exponential Moving Average have established short-term support around the 20 Exponential Moving Average territory. Thus, the token might extend its compression at $0.74 – $1 before trend-commitment moves.

A drop beneath the upward channel might catalyze a short-term plunge towards $0.74 before possible reversals. An ultimate closing beyond $1.04 might see the altcoin testing the upward channel’s upper trend-line before sliding.

Reasoning

The RSI (Relative Strength Index) maintained its spot beyond the midline, depicting a brief buying edge. Sustaining beyond the 58 support might support buying inclinations in the short-term.

Moreover, the CMF (Chaikin Money Flow) plunge beneath zero confirmed a selling preference. Nevertheless, the indicator formed lower troughs within the past two weeks before bullishly diverging with MATIC’s price action.

The VO (Volume Oscillator) maintained steep declines as the trading volumes resorted to massive plunges within the past few days. A possible volume increase would back the alt to overcome the shackles of its low volatility period.

Final Thought

MATIC’s sway beyond its 20-50 Exponential Moving Average ribbons indicated a bullish advantage in the near term. A bounce back from the upward channel’s lower trend-line might support a bullish run before pullbacks emerge.

Meanwhile, a decline beneath this reversal setup might welcome a near-term slump. Targets would stay as mentioned above. Lastly, enthusiasts should watch BTC, and its actions could affect MATIC.

Editorial credit: FellowNeko / shutterstock.com

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