As anticipated in the previous article, MATIC continued its downward trajectory towards the 61.8% Fibonacci support as it broke away from the bearish flag on the daily chart.
As of now, MATIC wanted to retest the crucial $1.45-$1.52 range near its checkpoint (POC, red) before positioning itself to make a trend move. If the bulls fail to step into this range and counter the sell-off, the alt would likely succumb to its prevailing bearish tendencies. As of going to press, MATIC was trading at $1,631, up 11.27% in the last 24 hours.
MATIC daily chart
The recent bearish flag reaffirmed the selloff as MATIC fell below its 20-50-200 EMA to test the $1.4 support. After falling more than 57% from its ATH, MATIC recovered itself from the $1.2 mark after hitting its 4-month low on Feb. 24.
Since then, the bulls have been eager to regain vital 61.8% Fibonacci support. Thus, the alt saw a strong rejection of lower prices as it jumped above its long-term POC. Accordingly, a sustained close above the 20 EMA could spur a rally towards the 50 EMA before the downtrend retreats.
It becomes vital to note that the 20 EMA (red) fell below the 200 EMA (yellow) after more than 13 months. This trajectory signaled the increasing bearish influence of recent weeks. In addition, the recent price moves showed a hidden bearish divergence (yellow trendline) with its daily RSI.
With this in mind, a possible test towards the POC would be likely in the coming days. Also, the current price is near all of its EMAs, increasing the likelihood of a volatile move in the future. Should the bears decline, a retest of the 50 EMA would likely be before it dips towards the 61.8% support.
The RSI broke out of its down channel but has yet to cross equilibrium and confirm the bullish edge. A drop below the trendline resistance (yellow) would confirm a hidden bearish divergence that would test the 45-47 range support.
Also, the CMF pulled back from above the zero line and also formed a divergence with the rising price. This move showed a bearish tendency.
Given the confluence that has developed between the differentials on the RSI and CMF, a test of the $1.45-$1.52 range in the coming days would be likely. But the investors/traders should keep a close eye on Bitcoin’s movement as MATIC shares a whopping 90% 30-day correlation with the King coin.
This post These indications suggest that HODLing may be the best way to go in MATIC
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