Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

The $0.8 and $0.7 areas represent regions where Polygon’s original token MATIC had found good demand in the past. The $0.65 area was visited last July before rallying 330% to $2.93 in December.

It was too early to say whether such an explosive rally could ensue as the technical structure remained bearish on the charts. It may take some time to break this downtrend, and intense demand would be needed for the bulls to make a comeback.

MATIC 12 Hour Chart

Source: MATIC/USDT on TradingView

The charts show a steady downward trend for MATIC since December 2021. There was a rally in mid-March, but the price was quickly pushed back below the $1.58 support level.

In May, the price fell below the $1.2 (red box) area, which had acted as a demand zone in September and October. In addition, MATIC tested this zone to confirm that it is a supply area and also fell below the $1 level.

In the past few sessions, MATIC formed a bullish engulfing candle on its jump from the USD 0.79 support level. Such an engulfment indicates strong buying pressure, but the question is, can bulls really continue in such bearish conditions?

Farther south, below the USD 0.79 level is the USD 0.7 demand zone where MATIC had risen since July of last year.


Source: MATIC/USDT on TradingView

The RSI on the 12-hour chart has been below neutral 50 since late March. This meant momentum has been on the bears side for the past six weeks, pointing to a bearish trend. The RSI has remained below 50 in recent days.

At the same time, the OBV has been in a steady downward trend since the beginning of April, making the sales volume dominant. This was especially true in the past week when the OBV plummeted. However, the CMF, which saw a sharp decline a few days ago, bounced back and was above zero again. Therefore, there was some suggestion of buying pressure.

The Bollinger Bandwidth Indicator has formed a series of higher lows over the past week, showing that volatility has increased over this period.


The indicators and the trend pointed to a continuation of the bearish trend. Volatility increased and selling pressure remained high. Approaching significance levels are the $0.8 support and the $1 resistance, and a move past either level would likely dictate the direction of MATIC in the coming days or weeks.

This post MATIC Forms a Bullish Reversal Candle Pattern; Should Investors HODL or Sell?

was published first on https://ambcrypto.com/matic-forms-a-bullish-reversal-candle-pattern-should-investors-hodl-or-sell/


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