Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
Polygons (MATIC) have been on a long-term uptrend as they formed a 6-month rising wedge (yellow) and reached ATH on December 27. But since then, the ALT has been downhill while having a relationship with the EMA Ribbon and Topsy Turby.
As the current descent wedge falls closer to the long-term floor at $ 0.961, bulls will be keen to break the bearish candlestick streak on the daily chart. At the time of the press, MATIC was trading at $ 0.973, down 6.5% in the last 24 hours.
MATIC Daily Chart
The recent bearish flag reaffirmed the sell move as MATIC fell below all EMA ribbons to test support for $ 0.96. After falling more than 67% from ATH, MATIC plummeted to a nine-month low at press. During the descent, the 61.8% Fibonacci support created a big hurdle, compressing MATIC into a rectangle.
However, the seller visibly took over as the seller pulled Alto below the golden Fibonacci level. With multiple bearish entangled candlesticks, MATIC confirmed a bearish flag gradually transposed into a descending wedge.
The $ 0.961 mark is important in determining the future movement of alt. A compelling close just above this mark could lead MATIC to a patterned breakout and test the robustness of the EMA ribbon. Given the historical trends that accompany the widening gaps in these ribbons, bears will probably limit this rally in the $ 1.2 to $ 1.3 range.
RSI has finally revived from the oversold mark of the trough over the past few days. A potential resurgence from its immediate trendline support (yellow) could confirm a bullish difference from the price.
The CMF has also withdrawn from the -0.11 level, reaffirming the decline in cryptocurrency funding. This move showed a bearish trend. Nevertheless, its lows have seen a similar trajectory to that of the RSI.
Coupled with the possibility of a bullish divergence at RSI, MATIC was able to see a short-term resurgence in the light of the descent wedge setting. Immediately above the current pattern, the alt is exposed and its EMA ribbon boundaries are tested in the range $ 1.2 to $ 1.3.
Finally, MATIC shares a staggering 30-day correlation with Kingcoin, so investors / traders need to pay attention to Bitcoin’s movements.