Key Takeaways:
- MATIC price started a major increase and cleared the $1.0 resistance.
- It broke a key contracting triangle with resistance near $1.02 on the daily chart.
- The recent breakout suggests a high chance of a strong move towards $1.20 and $1.30.
New Delhi(CoinChapter): Polygon’s MATIC is showing positive signs above $1.0. The price is consolidating gains and might soon aim a fresh move above the $1.20 barrier.
Polygon (MATIC) Price Signals More Upsides
This past week, we saw a strong increase in MATIC price from the $0.920 support zone against the US Dollar. The price formed a base above the $0.92 level and started a fresh increase.
There was a steady increase above the $0.95 and $0.98 resistance levels. The price gained over 14% in the past few days, outperforming ethereum and bitcoin. There was also a move above a key contracting triangle with resistance near $1.02 on the daily chart.
MATIC price daily chart | Source: MATICUSD on TradingView.com
The bulls pumped the price towards the $1.20 zone, where the price faced resistance. A high was formed near $1.20 before there was a downside correction.
The price is now trading well above $1.00 and the 50-day simple moving average (blue). It is consolidating above the 50% Fib retracement level of the upward move from the $.917 swing low to $1.20 high.
On the upside, an immediate resistance is near the $1.12 level. The next major resistance is near the $1.15 level. A clear move above the $1.15 resistance zone could set the pace for a major rally.
In the stated case, the price could test the $1.20 level. Any more gains might open the doors for a move towards the $1.30 resistance.
Fresh Decline?
Conversely, MATIC price might fail to clear the $1.15 resistance zone or $1.20. In the mentioned case, the price could start a downside correction. An initial support is near the $1.05 level. The next major support is near $1.02 and broken triangle resistance.
The 61.8% Fib retracement level of the upward move from the $.917 swing low to $1.20 high is also near the $1.025 level. A close below $1.02 may perhaps increase selling pressure. In the stated case, the price might dive towards the $0.920 support or the 50-day simple moving average (blue).
Overall, MATIC price is showing positive signs above the $1.0 zone. If the bulls remain in action, it could rally above the $1.20 resistance. If not, there could be a fresh bearish wave towards the $1.02 zone or even $0.92.
