MATIC’s retest of trendline support will give way to shorting opportunity at…
MATIC’s recent bearish pull below the 40 EMA posed revival barriers for the buyers. While the altcoin enters into a high volatility phase, the existing structure exhibited an outlook that was more toward the neutral side.
The reversal from the 23.6% Fibonacci resistance bogged down the bullish efforts to potentially test the $0.675-mark. At press time, MATIC traded at $0.5402, down by 8.05% in the last 24 hours.
MATIC Daily Chart
The 23.6% Fibonacci resistance curbed the recent bullish endeavors. Thus, a reversal from this level opened doorways for a fall toward the 0.5-zone. Meanwhile, the bulls strived to uphold the 20 EMA support level.
Also, the Point of Control (POC, red) has been an important area of value for over a month. The altcoin could likely head into a compression phase near the POC.
Should the current candlestick close below the 20 EMA, the alt could retest the four-month trendline support (yellow, dashed). In this case, potential shorting targets will rest in the $0.44-$0.46 range. The Evening Star candlestick setup has further spiked the probability of an extended downfall.
To invalidate these bearish tendencies, the bulls would need to find a close above the 23.6% level and the POC. In this case, the potential take-profit for the calls could lie in the $0.67-0.7 range.
The Relative Strength Index (RSI)’s recent retracement saw a slowdown near the midline. A potential bounce-back can aid the near-term buying efforts to challenge the POC resistance.
The northbound CMF, on the other hand, depicted a slight buying bias while maintaining its position just above the zero-mark. However, a bearish crossover on the DMI indicator can affect the revival ability in the coming days.
MATIC’s sustained close below the EMA ribbons could pave a path toward the lows of the $0.44-$0.45 range in coming sessions. Post this, the broader market sentiment would play a vital role in influencing the future trajectory.
However, investors/traders must keep a close eye on Bitcoin’s movement as MATIC shares a 78% 30-day correlation with the king coin.