Technical signs suggest a temporary decline in the near future, which gives Polygon a fragile appearance.
After seeing its market value surge over the previous month, Polygon appears to be ready for a pullback. However, there is a sizable region of support, which may keep its price stable.
Local Top Forms in Polygons
Although Polygon seems to be getting ready for a correction, it hasn’t yet managed to get beyond a crucial support cluster. The past month has seen a surge in MATIC. It increased by more than 200 percent, going from $0.32 at the low to $0.98 at the peak on July 18. The upswing’s importance suggests that the token is currently trading in overbought territory.
On the daily chart of MATIC, the Tom DeMark (TD) Sequential indicator has displayed a sell signal. The green nine candlestick, which denotes a one to four candlestick correction, was the first sign of the bearish formation. When the current red two candlesticks started trading below the prior red one candlestick, the negative outlook became more pronounced.
The Parabolic SAR, the 100-day moving average, and the 78.6 percent Fibonacci retracement indicator, all of which are present around $0.77, are serving as a key support cluster that MATIC is now maintaining above. A spike in negative pressure and a potential 22 percent fall toward the 50-day moving average at $0.58 might ensue from a daily candlestick closure below this important interest zone.
For the negative outlook to be refuted, MATIC will probably need to close above the high of $0.98 set on July 18. Cutting through this crucial resistance level may give it the drive to move forward in the direction of the $1.20 200-day moving average.
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