Polygon Price: The recent market correction took a notable toll on the layer 2 scalability platform, Polygon (Matic). From the mid-March peak of $1.29, the coin price plunged with a V-top reversal and lost 30% in value to reach $0.89. A look at the daily chart shows this correction as the formation of an inverted head and shoulder pattern signaling the potential for further downfall.

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Reversal Pattern Sets MATIC Downfall to $0.68

Polygon Price| Tradingview

The long-term trendline MATIC price is sideways evidenced by the two converging trendlines in the daily chart. This structure indicates the formation of a symmetrical triangle pattern—a chart structure, a notable consolidation in price before the dominance force breaks for the respective side and leads a directional rally.

However, the polygon price witnessed another reversal from the pattern’s upper boundary in mid-March, signaling the continuation of lateral movement. Furthermore, this fresh bear cycle develops a bearish reversal pattern Head and shoulder, which favors sellers to lead an extended correction.

On April 2nd, the MATIC price gave a bearish breakdown from $0.9 neckline support. Sustaining this breakdown may drive a 23% downfall to hit $0.687.

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Can MATIC Price Rebound?

Polygon Price| Tradingview

In a recent technical analysis update, the prominent trader @alicharts highlighted a bullish signal for Polygon’s native token, MATIC. According to the TD Sequential indicator—a tool used by traders to identify the timing of market trends—the MATIC daily chart is flashing a buy signal. @alicharts pointed out that if MATIC can maintain its momentum above the $0.87 level, there is potential for an upward movement towards $0.95, or even reaching the coveted $1 mark.

The TD Sequential presents a buy signal on the $MATIC daily chart! If #MATIC stays strong above $0.87, we could see a rebound to $0.95, or better yet, $1! pic.twitter.com/YSEoH7JbV4

— Ali (@ali_charts) April 5, 2024

Moreover, the 200-day EMA wavering around $0.87 creates a high area of interest(AOI) for buyers. A possible reversal will invalidate the breakdown of the H&S pattern and set the Polygon price for renewed recovery.

Exponential Moving Average: A bearish crossover between the 20 and 50-day EMA indicates the short-term in MATIC is bearish. 
Moving Averages Convergence Divergence. The increasing spread between the VI+(blue) and VI-(pink) indicates the sellers are strengthening their grip on this asset. 

The post Here’s Why Polygon Price Sees 22% Fall Amid Market Correction  appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am