Polygon (MATIC) looks shaky as technical indicators point to a short correction in the near term. According to experts, the altcoin is poised for a pullback after a surge in market cap over the past month. The Tom DeMark (TD) Sequential indicator gave a sell signal on the daily chart of MATIC. Still, there is a large support area that is likely to help protect the altcoin price.
Tom DeMark gives a sell signal for altcoin
It looks like Polygon, one of the leading altcoin Ethereum rivals, is preparing for a correction. But it has yet to break a vital support cluster. As you follow on Kriptokoin.com, MATIC had a rally last month. The altcoin made a tremendous run at $0.32, up more than 200%. MATIC rallied to $0.98 on July 18 at the end of this bull run. Given the importance of the rise, the altcoin seems to be currently trading in the overbought zone, according to experts.
Meanwhile, the Tom DeMark (TD) Sequential indicator, which gave a very successful 25 signal, gave a sell signal on MATIC’s daily chart. For accurate signals of the mentioned TD Sequential indicator, see this article of Kriptokoin.com. These signals are a bearish pattern developing as a green nine candlestick indicative of a one to four candlestick retracement. The pessimistic outlook strengthened as the current red two candlesticks started trading below the previous red candlestick.
This level is important for him to overcome the pessimistic view!
However, MATIC is holding above a key support cluster represented at $0.77 by the Parabolic SAR, the 100-day moving average and the 78.6% Fibonacci retracement indicator. According to analysts, a daily candlestick near the bottom of this critical interest zone is likely to cause an increase in downside pressure. Analysts see it as potentially leading to a 22% correction from the $0.58 low to the 50-day moving average.
MATIC daily chart /Source: TradingViewAccording to analysts, MATIC will need to surpass the July 18 high of $0.98 to invalidate the pessimistic outlook. It is possible that breaking this vital resistance level will give it the strength to move towards the 200-day moving average at $1.20.
At press time, MATIC was trading at $0.8373, down 1.58% over the past 24 hours, according to data from CoinMarketCap. However, the altcoin has performed well by 16.57% over the past week. However, MATIC stands 71% off from the $2.92 ATH level it saw about 7 months ago.
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