Should you consider buying MATIC? Technical indicators show it
Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
Polygon [MATIC] saw renewed buying pressure over the past month as buyers continue to inflict a series of green candles on the daily chart. This trend-altering comeback helped the bulls propel the price above the EMA ribbons.
The bulls were able to recover critical support levels after a much needed push from the breakout of the ascending triangle. A sustained bullish effort could help the buyers break through the $0.95 resistance in the coming sessions. At press time, MATIC was trading at $0.9446, up 1.7% in the past 24 hours.
MATIC daily chart
The descending phase of MATIC resulted in a two-month retracement that led to a devaluation of over 81% (from April 1) on the charts. After a gradual improvement in overall sentiment, buyers recovered their strength in the $0.32 region.
This reversal opened the doors for a break above the northbound EMA ribbons. The ribbons have made a bullish reversal after almost six months. Historically, these reversals have provided short-term support within the 20 EMA zone.
Any potential reversal of the $0.95 resistance could find rebound grounds in the $0.78-$0.81 range. A possible break of the immediate resistance could position MATIC to retest the $1.1 mark in the coming days. To ignore these short-term uptrends, the bears needed to inflict a close below the $0.72 level.
The Relative Strength Index (RSI) has gradually declined from the overbought mark. But a sustained position above the 58 point support could continue to support short-term buying efforts.
Additionally, the Awesome Oscillator (AO) has conveniently moved above equilibrium to reveal strong buying momentum. Nonetheless, Ob-Balance (OBV) volume marked higher highs over the past couple of weeks as price action continued to slam the $0.95 resistance. This trajectory suggested a slight bearish divergence.
The altcoin’s position above its north-facing EMA ribbons reinforced the bullish narrative. Threats along the OBV could cause some setbacks. But the objectives would remain the same as those mentioned above.
Finally, investors/traders should keep a close eye on Bitcoin’s movement, as MATIC shares a staggering 90% 30-day correlation with the master coin.