The short term MATIC price analysis showcases a correction phase in action. However, a bullish pattern in the 4-hour chart highlights the possibility of a bullish reversal. Nonetheless, traders must stay cautious in taking a side before the fruition of the pattern to avoid any traps in the chart.
Key technical points:
- The MATIC price struggles to rise above the 20-day DMA
- The selling pressure increases as the price hints at an evening star pattern formation
- The intraday trading volume in the MATIC coin is $1.21 Billion, indicating a 9.275% fall.
Source- Tradingview
The MATIC price rose to the $2.5 resistance level after finding demand at the confluence of $2 level and the support trendline. However, the price action shows an evening star candle pattern justifying a 4% rejection from a high selling pressure area.
The support trendline maintains an uptrend resulting in the price jump of 20% from its inception. Therefore, the possible retracement can halt near the trendline.
Moreover, the 20-day DMA acts as a dynamic resistance keeping the recent bullish attack in check. However, the constant support from the 100-day DMA helps to carry an uptrend in action.
The Moving average convergence divergence shows a free fall in the MACD and signal lines in the daily chart. However, the falling distribution in the bearish histograms indicates a fall in underlying bearishness.
MATIC Price Action Hints Bullish Pattern Breakout
Source-Tradingview
The MATIC price action forms a cup and handle pattern in the 4-hour chart. The neckline of the pattern is at the horizontal level of $2.40. Therefore, a price jump above the neckline will initiate a new bull run.
The decrease in trading volume during the handle formation of the pattern reflects trapping of momentum. Therefore, a breakout of either side will unleash the trapped momentum, and lead to a strong directional move.
The price action suggests the crucial high supply levels for MATIC price is at $2.84 following the neckline at $2.4 in the 4-hour chart. Meanwhile, the demand levels are at $2.2 and $1.8.
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