How MATIC buyers can leverage this strategy to remain profitable

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice.

Over the last three months, Poly­gon [MATIC] bulls restored their edge from the 14-month sup­port at the $0.34-level. The result­ing buy­ing come­back pro­pelled a bull­ish pat­tern that aid­ed MATIC in retest­ing the 200 EMA (green).

The alt­coin has now entered a crit­i­cal lev­el in the $0.7-$0.76 range. MATIC could like­ly see a dull phase giv­en the con­flu­ence of resis­tances in the $0.76 zone. At press time, MATIC was trad­ing at $0.7551.

MATIC Daily Chart

Source: Trad­ingView, MATIC/USDT

The pre­vi­ous ascend­ing chan­nel break­out growth aid­ed MATIC bulls to breach the $0.7-$0.76 range and flip it to sup­port. Since then, this range has sup­port­ed MATIC’s retrace­ment over the last month.

After revers­ing from the 200 EMA resis­tance bar­ri­er, the coin has been strug­gling to pull off a robust buy­ing ral­ly. After a brief down-chan­nel oscil­la­tion, the 20 EMA (red) dropped below the 50 EMA (cyan) to depict a sell­ing edge.

With these EMAs still look­ing south, the sell­ers could aim to restrict the buy­ing ral­lies in the $0.79-$0.81 range. A close below the $0.7‑mark would posi­tion the coin for a near-term down­side. In this case, the poten­tial tar­get would lie in the $0.607 region.

An even­tu­al close below the $0.81-mark can pro­voke a bear­ish inval­i­da­tion. The bulls must ramp up the buy­ing vol­umes to sus­tain a close above the imme­di­ate resis­tance range. In these cir­cum­stances, the buy­ers would look to retest the 200 EMA before a like­ly reversal.

Rationale

Source: Trad­ingView, MATIC/USDT

The Rel­a­tive Strength Index (RSI) marked some improve­ments as it eyed to test its equi­lib­ri­um. A close beyond the 50-mark resis­tance would con­firm a change in momentum. 

Fur­ther­more, the Chaikin Mon­ey Flow’s (CMF) posi­tion above the zero mark also res­onat­ed with the increas­ing bull­ish strength. Nev­er­the­less, MACD was yet to under­take a bull­ish crossover. The buy­ers should look for this crossover before tak­ing a long position.

Conclusion

MATIC’s posi­tion below the 20/50/200 EMA has depict­ed a broad­er bear­ish edge. A decline below the $0.7 base­line would reignite the near-term bearishness.

On the oth­er hand, a close above the $0.81-mark would hint at a near-term bear­ish inval­i­da­tion. The tar­gets would remain the same as discussed.

Final­ly, investors/traders must keep a close eye on Bitcoin’s move­ment as MATIC shares a 78% 30-day cor­re­la­tion with the king coin.

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