- MATIC worth holds topside development line throughout a day of widespread promoting within the cryptocurrency advanced.
- Polygon weekly Relative Energy Index (RSI) index nonetheless reveals an excessive overbought situation.
- Digital token ranks because the seventeenth largest cryptocurrency by market capitalization.
MATIC worth is on tempo to shut with consecutive inside days on the bar chart, solidifying the rebound above the topside development line. Polygon will see spurts of shopping for and promoting stress, however it’s important to carry key assist ranges on a each day and weekly closing foundation. For now, the upside is restricted, however the digital token is technically well-positioned to steer the crypto market larger within the months forward.
MATIC worth consolidation hides new alternatives
MATIC worth sustained a major intra-day collapse on Might 19, however the altcoin rebounded from a 60% loss to shut with a 33% loss. The decline ended the large rally for Polygon from April 26 to Might 19, however it does not alter the underlying fundamental momentum behind the Ethereum scaling resolution.
The power of MATIC worth is seen on the each day chart as Polygon didn’t even contact the 50-day easy shifting common (SMA) on the peak of the promoting; as an alternative, it held the April 30 consolidation excessive at $1.02 earlier than closing above the tactically vital topside development line. Furthermore, Polygon bottomed earlier than the 50% retracement of the April-Might advance at $0.91.
The sell-off did alleviate the overbought situation on the each day RSI. Nonetheless, the weekly RSI has barely budged from excessive ranges, suggesting that new highs for MATIC worth could possibly be restricted till the RSI declines beneath overbought ranges.
MATIC worth is an outlier in technical positioning. Nevertheless, the short-term outlook is impartial till the broader weak spot within the crypto market subsides, and bellwether digital tokens formalize superior assist ranges.
Upside momentum could also be restricted to the 261.8% Fibonacci extension of the early Might correction at $1.99 on a each day closing foundation. A bountiful rally for cryptocurrencies may launch MATIC worth to the all-time excessive at $2.89 in a short time, securing its place because the chief.
MATIC/USD each day chart
Present market situations stay tenuous in the mean time, and renewed promoting stress may emerge. A each day shut beneath the topside development line can be the primary sign that MATIC worth may check the Might 19 low at $1.01 and doubtlessly fall to the 50% retracement. Heavy promoting may drive Polygon all the way down to the 50-day SMA at $0.76 earlier than a agency low is established.
In a fluid investing setting, buyers ought to goal relative power leaders akin to Polygon and use the technical ranges talked about above to commerce towards.