Global indices on Monday fell down sharply, with the Dow Jones trading below 1% at one point. But sentiment changed overnight, and Crypto investors are back playing the buy-the-dip tune, especially with regard to MATIC.
MATIC had difficulties looking for any price upside the past few weeks. Every attempt for a break higher either got rejected by the 55-day Simple Moving Average on the 4-hour chart or Matic price had to face the orange descending trend line from May 27.
But the dip toward $0.92 still has buyers very much in control. An intermediate level at the price of $1.16 has proven to be tricky. After the rejection to the upside on June 29 and the bounce off the descending trend line, we cannot push firmly above that $1.16-marker.
The death cross in the 55-SMA and the 200-SMA on the 4-hour chart placed a cap on the potential upside for Polygon MATIC price. But that has changed now, with the 55-day SMA becoming support level after a clear break to the upside. Add to that the respected short-term black ascending trend line pattern from June 26, and we have two excellent short-term positions where buyers bought Polygon.
Buyers will wait for a clear breakout above the 1.16level before looking at taking a profit. The first port of call will be around the price of $1.30, where we have a psychological level and the 200-SMA coming in.
Should market sentiment turn sour again as yesterday, expect a choppy retest around the 50-SMA and a possible third test of the black ascending trendline? If that one fails to hold, look for MATIC price to dip toward $1 with its psychological effect and the ascending orange trend line.
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