Altcoin MATIC is facing resistance at $0.5807. However, it gives hints that the uptrend will reverse. Polygon’s trading volume increased by 16.5% as prices retreated. The upside RSI trend indicates a potential switch to bullish momentum.
Is altcoin MATIC a sign of a new season?
Despite enjoying a promising bull rally at the beginning of the day, the price of Polygon (MATIC) suffered a pullback after failing to overcome the $0.5807 resistance level. As a result, the price dropped to an intraday low of $0.5635 before recovering modestly. Altcoin MATIC has exhibited a slight recovery from the low of the day. At the time of writing, it is trading at $0.5687.
The drop in price showed that altcoin MATIC’s market cap fell by 1.73% to $5,299,919,552. However, 24-hour trading volume increased an impressive 16.50% to $250,372,453. Accordingly, he pointed to increased trade activity. This price pullback is likely due to profits from traders who took advantage of the earlier bull rally. Still, the price recovery points to persistent buying interest in altcoin MATIC. Accordingly, this indicates a potential for further price action.
What does the 2 hour chart say?
On the MATIC/USD 2-hour price chart, the 20-day moving average (blue) is positioned below the 100-day moving average (orange). Also, the first and second are currently touching $0.575 and $0.618 respectively. It is important that the shorter-term moving average falls below the longer-term moving average. This trend points to a bearish signal as it is often interpreted as a sign of bearish momentum.
However, recent price action shows that green candlesticks are forming as it approaches the 20-day MA. Accordingly, this implies that buyers entered the market to support the price. If this buying pressure continues and the price successfully rebounds from the 20-day MA, it will signal a potential reversal in the downtrend for altcoin MATIC.
Relative strength index
Adding to this optimistic outlook, the Relative Strength Index (RSI) is moving higher at 40.09. Accordingly, this indicates that the selling pressure for the altcoin may weaken. It also signals a possible shift towards bullish momentum. If this RSI trend continues, there will be an increase in buying activity. In this case, we could see a potential reversal of the bearish trend for altcoin MATIC.
All in all, altcoin MATIC’s price drop indicates continued buying interest despite the pullback supported by the moving averages and the RSI uptrend. Therefore, when we look at cryptokoin.com, MATIC is facing a bullish potential.
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