MATIC Price Breaks Out of 3-Month Bullish Pattern Hints 40% rally Ahead

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Amid the ongoing sell-off in the crypto market, the MATIC price turned down from $1.53-$1.5 resistance and witnessed a minor correction phase. The coin price has been falling for five consecutive days and has recorded an 11.3% loss to reach the $1.36 mark. However, this downfall is a retest phase to the recently completed rounding bottom pattern after the $1.31 resistance breakout.

Key Points

The core concept behind the rounding bottom pattern is that it represents a gradual shift in investor sentiment from bearish to bullish.
The parabolic growth in MATIC price backed by increasing volume indicates sustained recovery
The intraday trading volume in the MATIC is $735.2 Million, indicating a 37.5% gain.

MATIC Price Source- -Tradingview

The last three months’ price action of MATIC coin showcased the formation of a rounding bottom pattern. The pattern is formed when a coin price gradually falls to a low point, then begins to rise in a steady, rounded pattern. This gradual rise can continue until the price reaches a level that is equal to or higher than the starting point of the pattern.

On February 15th, the MATIC price gave a bullish breakout from the $1.31 neckline resistance of this pattern, indicating the buyers’ confidence in reaching a higher level. However, as mentioned the altcoin formed a local top at $1.53 and reverted to retest the breached resistance.

Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023

This downfall backed by low-volume acting indicates the correction phase is temporary. If the coin price shows sustainability above $1.33-$1.31 the interest traders can look for an entry opportunity.

The post-retest rally could drive the polygon coin price 40% higher to hit the $1.88 mark.

On a contrary note, this potential bullish rally may face in-between resistances at $1.53-1.5, and $1.74-1.7.

Technical Indicators

RSI: despite rising price action, the daily RSI slope moving sideways indicates weakness in bullish momentum. Thus, this bearish divergence indicates the MATIC price could witness strong pullbacks moving ahead.

EMAs: The 20-day EMA has proven to offer strong support during the occasional pullback, and thus the traders can use it for trailing stop loss.