MATIC finally broke above its $1.20-1.26 resistance zone after a 18% hike over the last 24 hours. Now that MATIC prices sit at a 7-week high, here were some levels to look at in the coming days. At the time of writing, MATIC traded at $1.36 and held the 18th spot in CoinMarketCap’s crypto rankings.
MATIC Daily Chart
Source: MATIC/USD, TradingView
An ascending triangle breakout was key to MATIC’s current rally after prices formed higher lows since late-July. The Fibonacci tool was plotted on the daily chart using its ATH of $2.82 and late-July low of $0.622. The next target zones now lay at the 50% Fibonacci ($1.72) and 61.8% Fibonacci ($1.92) levels, both of which were prominent in June.
Moreover, Visible Range suggested that the alt’s rise would most likely be countered by selling pressure at the aforementioned levels due to good interest. MATIC traders can expect a new ATH once prices breach the upper limit of $2.35 as weak resistance zones lay above this price mark. To negate this outcome, bears would need to target a close below the $1-mark.
Reasoning
Prior to MATIC’s rally, Relative Strength Index had constantly formed higher lows since reversing from oversold territory. This meant that bulls maintained market control even when prices moved traded sideways. MACD traded above the half-line which usually serves as a buy signal. Meanwhile, On Balance Volume maintained its upwards trajectory after breaking away from its downtrend in late-July.
Conclusion
MATIC seemed to have found renewed buying pressure which was unlikely to dissipate over the coming weeks. Additional areas to look at were the 50% Fibonacci ($1.72) and 61.8% Fibonacci ($1.92) levels. Moreover, a close above the 78.6% Fib level ($2.35) could propel the digital asset to a new ATH due to the presence of weak resistance zones.
