Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

MATIC’s bearish break below the $1 mark has exposed the alt to fresher multi-month lows over the past month. The recent pattern break is struggling to topple the 23.6% Fibonacci resistance on the daily time frame.

The broader liquidations helped sellers push MATIC below the four-month trendline resistance (yellow, dashed). A close above the USD 0.398-$0.42 range is critical to confirming some decent bullish upturn opportunities.

Due to its relatively high correlation to Bitcoin, the altcoin could see bullish nullifications. As of going to press, MATIC was trading at $0.396, up 12.54% in the past 24 hours.

MATIC 4 Hour Chart

Source: TradingView, MATIC/USDT

From a short-term perspective, MATIC saw a morning star lineup after breaking out of the falling wedge (white). While the price action found a close outside the 20 EMA (red), the price action struggled to push the boundaries of the 50 EMA (cyan).

A convincing close above the $0.4 level could help near-term buying attempts to test the $0.45 zone in the coming sessions.

MATIC daily chart

Source: TradingView, MATIC/USDT

Over a somewhat longer time frame, MATIC aims to break above the bonds from the Fibonacci level of 23.6%. Any close above this level would expose the alt to an uptrend towards the 38.2% level and the four-month trendline resistance. So the potential targets would be in the $0.44-$0.49 range.

However, an analysis of the breakout day volumes revealed an unpleasant picture for the bulls. With trading volumes dwindling, 24-hour gains failed to reflect a strong bull move.

Therefore, reversals from the 23.6% level could lead to a 14-month retest of the USD 0.33-$0.35 support range.

Source: TradingView, MATIC/USDT

The Relative Strength Index (RSI) closed above the 31-mark support as the bulls tried to protect the alt’s long-term support. Continued recovery from here should help buyers ease selling pressures in the coming days.

Post a bullish divergence on the CMF with price, buyers got enough momentum to reject lower prices and test the 23.6% level.

Conclusion

Given the bullish candlestick pattern on the H4 alongside the pattern break and CMF’s bullish divergence on the daily timeframe, ETH had opportunities to test the 38.2% level. The objectives would remain the same as stated above.

Any bullish void should likely find a recovery area in the $0.33-$0.35 range. Also, investors/traders should keep a close eye on Bitcoin’s movement as MATIC shares a whopping 98% 30-day correlation with the king coin.



This post How MATIC Traders Can Make the Most of Breaking This Pattern

was published first on https://ambcrypto.com/how-matic-traders-can-make-the-most-out-of-this-patterns-break/

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