Disclaimer: The information presented does not constitute financial, investment, trading or other type of advice and is solely the opinion of the writer.
MATIC buyers eventually gathered enough momentum to trigger a bullish flip on the EMA ribbons for the past week. After witnessing a solid buying frenzy, the alt hovered above the 38.2% Fibonacci level.
Bulls breached previous Fibonacci levels after breaking out of the rising triangle. An ongoing bullish effort could help the bulls retest the 50% Fibonacci level in the coming sessions. As of going to press, MATIC was trading at $0.8448, down 4.45% in the past 24 hours.
MATIC daily chart
The altcoin witnessed an expected mid-June reversal of the 23.6% Fibonacci resistance and lost more than 50% of its value from June 10-18. The market-wide rebound allowed buyers to payback to provoke a bullish pattern in the daily time frame.
This reversal opened doors for a break above the northern EMA ribbons. Historically, bullish flips on these ribbons result in bulls providing support near the 20-30 EMA. Also, the buyers broke out of the constraints of the trendline resistance and flipped it to support (white, striped).
The decline from the 50% level could lead to a recovery of opportunities in the $0.77-$0.73 range. In this case, the bullish rebound may prompt the alt to retest the $0.9 zone before a trend occupation takes place.
To avoid buying intent, the bears had to force a close below the USD 0.6 level. Here, the direct trendline support could offer bounce back opportunities from the $0.57 to $0.55 range.
Recent growth in the Relative Strength Index (RSI) sparked an expected reversal from the overbought region. A sustained position above the 58-mark support could aid buying efforts in the near term. Also, the Moving Average Convergence Divergence (MACD) lines moved comfortably above equilibrium to reflect strong buying momentum.
In addition, recent buying volumes have exceeded selling pressures to reflect a strong bull move. But buyers must guarantee the $0.74 baseline to avoid fallout.
MATIC’s recent break above its EMA ribbons reflects bullish sentiment for the currency. The goals remain the same as discussed above.
However, investors/traders should keep a close eye on Bitcoin’s movement as MATIC shares a staggering 86% 30-day correlation with the king coin.
This post Assess whether MATIC bulls can handle another 10% rally after this bullish crossover
was published first on https://ambcrypto.com/assessing-if-matic-bulls-can-accommodate-another-10-rally-after-this-bullish-crossover/