MATIC Technical Analysis: Rising Prices Hints at Channel Breakout

The MATIC coin price action shows a bullish reversal which increases the chances of an upside breakout of the falling channel pattern. Polygon is described as a Layer 2 scaler, meaning that the project isn’t looking to improve its existing blockchain layer anytime soon. The goal of the project is to reduce the complexity of scaling and immediate blockchain transactions. Polygon is a customized variant that is based on the Plasma framework that is built around proof-of-stake checkpoints which traverse the Ethereum mainchain. This is a unique method that lets each sidechain of Polygon to reach up to 65,536 transactions in a single block. Let us move ahead to read about MATIC technical analysis. Past Performance of MATIC The MATIC coin prices show a reversal from the 50% Fibonacci retracement level at $2, which also acts as a psychological support level. After a little more than 30% retracement from $3 to $2, the price action finally recovers, teasing the bulls, overcoming the selling pressure. Therefore, the price action hints at a reversal above the above to $2.5. MATIC/USD Daily Chart MATIC Technical Analysis The MATIC coin price action shows lower price rejection near the 50% Fibonacci retracement. However, the price struggles to rise above the resistance trendline of the falling channel. The crucial EMAs (50, 100, and 200) show a positive alignment as the price finds support near the 100-day EMA. However, the price struggles to rise above the 50-day EMA. Therefore, a breakout of the 50-day EMA will generate a buying opportunity. The MATIC price action indicates a resistance pivot level at $2.35 and $3 above the falling channel. The support levels are at $2 and $1.70 which can halt a downfall. The RSI indicator at 46% shows the slope struggling to reach the central mark in the daily chart. Moreover, the 14-day SMA shows a gradual falling slope. The MACD indicator shows a dramatic fall in the fast and slow with the increasing gap between the lines. However, the sudden reversal in the fast line increases the chances of a bullish crossover. Additionally, the weakness in the intensity of bearish histograms indicates a loss in bearish prowess.  Upcoming Trend The MATIC coin price action shows a bullish reversal from the 50% Fibonacci retracement level at $2. The rising prices indicate a high possibility of a bullish breakout of the falling channel. Therefore, traders can shortly find a bullish entry opportunity above the resistance trendline.

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