After the aggressive bloodbath in early June, the MATIC price has been moving sideways, with daily candles showing short bodies and rejection wicks on either side. This indicates no clear dominance from either buyers or sellers. However, a closer examination of the lower time frame chart reveals the formation of a symmetrical triangle pattern, which could provide better clarity for a potential rally during this time of uncertainty.
At present, the Polygon coin trades at $0.604, with an intraday loss of 1.5%. The trading volume in MATIC is $226.5 million, demonstrating a 4.57% gain. The $0.52 level is a strong demand zone for MATIC buyers, but a bullish breakout from the resistance trendline is required for a significant recovery.
The current uncertainty in the MATIC price is likely due to the conflict between the overall downtrend and buying pressure that arises from a discounted market value. As a result, the symmetrical triangle pattern has helped the coin price to consolidate between two converging trendlines.
In most cases, the triangle pattern serves as a continuation pattern, meaning that the prices are more likely to break the lower trendline and resume the prior downfall. If a 4-hour candle closes below the trendline, selling pressure might increase and cause a 13% drop to revisit the $0.52 support.
On the other hand, the MATIC price might break the resistance trendline of the triangle pattern and trigger a bullish upswing. This breakout could elevate the altcoin by 22.5% before facing the critical resistance of the downtrend near $0.75. The current downtrend is sustained by this trendline, so a breakout above it is necessary for a significant recovery above $0.8.
Market indicators such as the Bollinger Bands and the Relative Strength Index (RSI) also offer insights into the current market sentiment. The bands of the Bollinger Band are squeezed, highlighting the indecisiveness in the market and the necessity for a significant breakout to spark a directional rally. Meanwhile, the growth of the RSI slope indicates an increase in bullish momentum and the possibility of a bullish recovery.
While the presented content reflects the personal opinion of the author and is dependent on market conditions, it is crucial to conduct thorough market research before investing in cryptocurrencies. The author or publication assumes no responsibility for personal financial loss.
Source: Coingape
