Cryptocurrency

MATIC forms a bullish reversal candle pattern; should investors HODL or sell

Disclaimer: The findings of the next evaluation are the only real opinions of the author and should not be thought of funding recommendation

The $0.8 and $0.7 areas characterize areas the place Polygon’s native token MATIC had discovered good demand previously. The $0.65 space was visited final July earlier than a 330% rally to succeed in $2.93 in December.

It was too early to inform whether or not such an explosive rally might ensue, because the technical construction remained bearish on the charts. Breaking this downtrend might take time, and intense demand could be vital for the bulls to mount a comeback.

MATIC- 12 Hour Chart

Source: MATIC/USDT on TradingView

On the charts, we see a regular downtrend for MATIC since December 2021. In mid-March, a rally was witnessed, however the worth was shortly pushed again beneath the $1.58 assist degree.

In May, the worth fell under the $1.2 space (crimson field), which had acted as a zone of demand in September and October. Moreover, MATIC examined this zone to substantiate it as an space of provide and fell beneath the $1 degree as nicely.

In the previous few periods, MATIC fashioned a bullish engulfing candle on its bounce from the $0.79 assist degree. Such an engulfing signifies sturdy shopping for stress, however the query is- Can bulls actually comply with by in such bearish situations?

Further south, beneath the $0.79 degree lies the $0.7 demand zone the place MATIC had rallied from final July.

Rationale

MATIC forms a bullish reversal candle pattern at the $0.8 support, but follow through could be unlikely

Source: MATIC/USDT on TradingView

The RSI on the 12-hour chart has been under impartial 50 since late March. This meant that momentum has been on the facet of the bears previously six weeks, and indicated a bearish pattern. In the previous few days, the RSI continued to be under 50.

At the identical time, the OBV has been on a regular downtrend since April started, which meant that promoting quantity was dominant. This was very true previously week, because the OBV plummeted. However, the CMF, which noticed a steep decline a few days in the past, picked itself up and was again above the zero mark. Hence, there was some suggestion of shopping for stress.

The Bollinger bands width indicator has fashioned a sequence of upper lows previously week, exhibiting that volatility has been on the rise on this time interval.

Conclusion

The indicators and the pattern pointed towards a continuation of the bearish pattern. Volatility was on the rise, and promoting stress remained sturdy. Imminent ranges of significance are the $0.8 assist and $1 resistance, and a transfer previous both degree would possible dictate the path of MATIC within the days or weeks to return.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button