Polygon’s MATIC is gearing for an upwards run after tagging the baseline of an up-channel. However, the price faced stiff overhead resistance and bears would regain control if the 50% Fibonacci level is not overturned. At the time of writing, MATIC traded at $1.72, up by 5.6% over the last 24 hours.
MATIC 4-Hour Time Frame
MATIC has set up a bullish rebound within its up-channel after completing a full 22% run down from $2.06 to $1.60 last week. However, a few strict conditions had to be met for a fresh higher high at the upper trendline.
For instance, the zone between $1.75-$1.85 contained the Ichimoku cloud’s 4-hour baseline (red) and the daily conversion line (not shown). Both lines are primarily used to gauge the strength of a trend but also function as resistance/support. A decisive close above $1.85 would eliminate a large chunk of selling pressure but bulls would have to get past the cloud’s upper limit around $1.93 to set a new high above $2.12. Overall, the ascent would account for a 22% increase from MATIC’s press time level.
Meanwhile, the RSI was attempting to move past 50 and offer to move bullish assistance to investors. A shift past 60 would certainly help MATIC’s near-term narrative as it takes on the 50% Fibonacci level. A bullish crossover on the MACD also lent a helping hand. However, long setups would be restrained until the MACD recovers above its half-line.
Should the price be denied within the immediate $1.75-$1.85, bulls would have to defend the channel from a breakdown once again. A close below $1.60 would bust the market wide open, with potential for losses ranging between 9%-19%.
Conclusion
MATIC had a tough row to hoe heading forward. Even though a rally was developing, the price had to break a resistance trifecta to regain control above $2. Traders should keep an eye on the 24-hour trading volumes as the projected ascent would need to be backed by consistent buy orders.