MATIC was attempting a premature exit from its up-channel. Any breakouts seen over the near term would have a high chance of failing as buyers were yet to consolidate in the market. Those trading these tokens should assess market conditions only if a second buy opportunity comes to light at $1.75.
MATIC Hourly Chart
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MATIC is on the verge of an up-channel breakout after lining up a series of green candles at the upper trendline. Near-term sentiment continues to favor the buyers after a bullish crossover between the hourly 200-SMA (green), 20-SMA (red) and 50-SMA (yellow) transpired a few sessions ago.
The hourly RSI also supplemented a favorable outlook after shifting above 55 yesterday. However, chances of a fakeout were considerably high as bulls were yet to fully get behind the move. The volume oscillator was trading below equilibrium and any breakouts created on low volumes have a lower chance of sustaining at high price levels.
Hence, any immediate breakouts would likely be halted at 27 January’s swing high of $1.83. If a second buy opportunity at $1.75 fails to gather momentum, MATIC would likely form a new higher low around $1.60.
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If bulls tick all the volume checkboxes, it’s possible that the price would head back to a zone of supply between $2.0-$2.20. Take-profits can be expected after the upswing if MATIC fails to flip its 4-hour 200-SMA (not shown) to bullish.
Conclusion
While bullish SMA crossovers and a healthy RSI underpinned MATIC’s breakout, bulls were yet to jump on board. At the time of writing, MATIC’s trading volumes clocked in at $1.25 Billion, a 25% discount compared to yesterday. If these volumes start to pick up as the price holds near the upper trendline, there is a chance that MATIC could revisit $2 after a breakout. However, it’s likely that MATIC would form a new low of around $1.60 if its volumes conditions aren’t met.