Polygon (Matic) hints at a morning star pattern to fuel a trend reversal rally from crucial support at $0.38. Will the bullish trend in MATIC reclaim $1 with a breakout run?
With a falling channel trend stuck at $$0.38, Polygon bulls are teasing a trend reversal rally. As the underlying demand grows for the MATIC token, the short-term sentiments tease a bullish continuation amid the broader market slowdown. Will Polygon reclaim $0.50 for a breakout rally this week?
$0.38 Support Halts The Falling Channel Trend
Taking another support from the $0.38 level after a span of 2 years, Polygon shows a falling channel in action. With the altcoin price failing to sustain above critical levels, the downfall warns of a breakdown.
However, the weekly candle last week forms a long-tail candle, suggesting a strong underlying demand that is able to overturn the supply pressure. With a positive cycle incoming in the falling channel, Polygon eyes a breakout run to reclaim lost levels.
Supporting the bullish revival, the weekly RSI line shows a bullish divergence in the last two low formations, teasing a jump ahead. Further, the weekly RSI line hovers above the oversold boundary with increased reversal chances.
Currently, the Polygon price trades at $0.409 and starts the week with a 1.24% price jump. Thus, Polygon signals a potential uptrend this week if the broader market remains stable or recovers.
Polygon Derivatives Hits Crossroads
Despite a decline in OI, the Polygon is down to $107 Million, with the volume hitting $170M by an 87% rise.
Further, the Long/Short ratio of the past 24 hours is under 1, at 0.9004, reflecting a bearish narrative. However, the top traders on Binance on account basis reveal 1:3 in bullish support.
Will Polygon Hit $1?
With the Doji candle at a crucial support level, the price action traders anticipate a trend reversal in Polygon. Further, it increases the chances of a morning star pattern at the baseline.
Thus, the altcoin may shortly experience a breakout rally of a falling channel pattern. As per the Fibonacci levels, the uptrend could hit the 50% Fibonacci level at $1.050.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
