Polygon (MATIC) was on a gentle uptrend because it fashioned a six-month-long rising wedge (yellow) and attained its ATH on 27 December. Since then, it noticed a steep fall whereas falling beneath its 20-50-200 EMA.
Shifting ahead, MATIC regarded to check the 61.8% Fibonacci help on the $1.5-mark and affirm the start of a downtrend for the alt. Traders must hold a detailed watch on the 20 EMA (inexperienced). Any shut above this stage might end in a short-lived downtrend. At press time, MATIC traded at $1.602, down by 5.9% within the final 24 hours.
MATIC Every day Chart
Since its ATH, the alt examined its nine-month trendline (earlier help) twice earlier than snapping it to type a bearish flag on its every day chart. In consequence, the worth motion fell beneath its 200 EMA (blue), depicting a potential begin of a long-term downtrend.
After an over 50% fall (since its ATH), MATIC picked itself up from the 61.8% Fibonacci help solely to face robust resistance on the $2-mark. With a number of bearish engulfing candlesticks previously 4 days, the alt confirmed the bearish flag after breaking out of it and reaffirming the promoting stress.
Whereas the present value continues to be not overstretched from its 20-50-200 EMA, the possibilities of a continued downtrend enhance because it eyed to check the $1.5-level. This stage can be an important zone for the consumers to step in and forestall an additional drift towards the $1.2-mark. Furthermore, the worth fell beneath the 200 EMA for the primary time since July 2021. Contemplating the weak readings on its technicals, there are slim probabilities for the alt to reverse the continued trajectory.
The RSI misplaced its midline after forming a bearish divergence with value. It was southbound and aimed to retest the 38 mark. Moreover, with the -DI trying north, the bears reaffirmed their vigor that may justify bearish actions within the coming days. However its ADX was on a downtrend whereas depicting a weak directional pattern.
Maintaining in thoughts the confluence created between aforestated elements, MATIC wanted to brace itself for a continued downtrend. Any shut beneath the golden Fibonacci stage would propel a take a look at of the $1.2-mark within the coming days. Nonetheless, the broader market sentiment must also be taken under consideration to make a worthwhile transfer.