MATIC: Is it a good time to buy? This breakout could be key answer
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
MATIC bulls finally gathered enough thurst to flip the three-month trendline resistance to support in the past two days. After witnessing a solid buying spree, the alt floated above the 20 EMA (red) and the 50 EMA (cyan).
Bulls finally found a spot beyond the 23.6% Fibonacci level after a gradual month-long effort to push for higher prices. A sustained bullish push could aid buying efforts to retest the 38.2% level in the coming sessions. At press time, MATIC was trading at $0.707, up by 13.89% in the last 24 hours.
MATIC Daily Chart
The coin saw an expected mid-June reversal from the 23.6% Fibonacci resistance and lost over 50% of its value from 10-18 June. Then, it saw robust bullish revival efforts from the 14-month lows at the $0.32-mark.
This reversal opened doorways for a break above the basis line (green) of the Bollinger Bands (BB). Meanwhile, the bulls finally inflicted the near-term EMAs to look north. Any bullish crossovers would further heighten the chances of a continued recovery.
A continued revival could see a hurdle near the 38.2% Fibonacci resistance. In this case, potential targets would rest in the $0.77-zone. To disregard the buying inclinations, the bears needed to inflict a close below the $0.6-level. Here, the immediate trendline support could provide bounce-back opportunities from the $0.57-zone.
The Relative Strength Index (RSI)’s recent growth slowed near the 65-mark level. A sustained position above the 59-mark support could aid the near-term buying endeavors. Also, the MACD lines positioned themselves above the zero-mark to depict a strong buying momentum.
The southbound CMF, on the other hand, revealed lower peaks. Thus, the recent move on the part of the bulls seemed relatively weak. The traders/investors should watch for a breach of this trendline resistance before placing calls.
MATIC’s recent break above its ascending triangle setup and the near-term EMAs could propel a recovery in the coming days. The targets would remain the same as discussed above.
However, investors/traders must keep a close eye on Bitcoin’s movement as MATIC shares a 38% 30-day correlation with the king coin.