Polygon Price Prediction: MATIC lifts off $0.8 support while preparing for 60% upswing
- Polygon begins rolling upward after finding key support at $0.8.
- MATIC’s short-term technical levels align in support of the awaited recovery.
Polygon fell victim to the massive declines that swept across the cryptocurrency market throughout last week. After the rejection at the all-time highs of $2.5, MATIC dropped like dead weight in the air, to the extent of exploring levels under $1.
Robust support established at $0.8 allowed bulls to regain balance. The stability at this zone has led to an impressive recovery above $1. At the time of writing, Polygon is trading at $1.43, while bulls look forward to lifting beyond $1.
Polygon overcomes crypto market bearish pressure as $2.5 beckons
MATIC seems to have settled above the 100 Simple Moving Average (SMA) on the four-hour chart. The ongoing recovery stems from the formation of a falling wedge pattern. This is a highly bullish technical pattern mainly formed in a downtrend.
The wedge is created by two trend lines, connecting a series of declining highs and lows. As the lines converge, the persistent bearish pressure begins to fade. On the other hand, bulls start to fight to take control. A final break above the upper trend line results in a massive breakout with a target measure from the pattern’s highest to lowest points, as observed on the chart.
MATIC/USD four-hour chart
In addition to the above technical formation, MATIC’s short-term technical picture is bullish, as reinforced by the Moving Average Convergence Divergence (MACD). Following the recent dive to the negative region, this indicator is gradually moving toward the positive area.
The MACD is helpful when identifying positions to buy the dip or sell the top. A buy signal comes into the picture when the MACD line (blue) crosses above the signal line. Moreover, crossing above the mean line tends to cement the bullish outlook.
Polygon’s bullish narrative has also been emphasized by the Relative Strength Index (RSI). This trend strength indicator hoisted off the oversold region and is shrinking the gap to the overbought area. If this upward movement is not interfered with, more buyers will come to the market, creating a more bullish force.
A four-hour close above $1.5 is crucial to sustaining the uptrend. Besides, a delay is anticipated at the 50 SMA resistance before MATIC makes the final lift to $2.
On the downside, closing the day under $1.5 may increase overhead pressure, which may slow down the uptrend or sabotage it completely. Support is envisaged at the 100 SMA, $1.1, and $0.8.