Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be taken as funding recommendation
MATIC was traversing inside a horizontal channel after raking in beneficial properties submit a symmetrical triangle breakout. Bearish divergence on the RSI, together with the 20 and 50-SMA’s interaction, hinted at some southbound value motion earlier than MATIC can problem $1.70.
On the time of writing, MATIC was buying and selling at $1.55, down by 0.6% over the past 24 hours.
MATIC 4-hour Chart
Supply: MATIC/USD, TradingView
MATIC propped up by almost 20% from the breakout level after bulls capitalized on the symmetrical triangle setup on the charts. Because the swing, MATIC has traded inside a parallel channel, forming constant highs at $1.62 and lows at $1.45.
Ideally, the sample ought to play out as a continuation of MATIC’s earlier uptrend. In such a case, the alt would problem $1.70 after yet one more upwards breakout. Nevertheless, a number of pink flags indicated that MATIC was on the danger of a possible 10% sell-off.
Initially, the 50-SMA (yellow) was inching in the direction of the 20-SMA (pink) as bullish momentum took a hiatus after MATIC’s earlier breakout. A bearish crossover between these shifting common strains would enable initiating extra promote positions out there. Secondly, the RSI confirmed a bearish divergence after forming decrease peaks versus MATIC’s value motion.
If the index had been to slide under the half-line, MATIC would face the warmth of short-sellers as nicely. A bearish twin peak on the Superior Oscillator solely bolstered this concept and offered some turmoil forward. Based mostly on these findings, MATIC would method the decrease finish of its sample and threaten a breakdown.
If an early pushback shouldn’t be supplied at $1.43, MATIC may revisit the assist zone of $1.35-$1.30, earlier than stabilizing. Nevertheless, count on bulls to place up a combat at $1.45 and deny a breakdown try. The Directional Motion Index’s bullish crossover nonetheless performed in favor of the consumers and an uptrend appeared to be intact at press time.
Conclusion
MATIC could be anticipated to revisit the baseline of its sample ($1.45) after a number of bearish indicators cropped up on the chart. Ought to sellers emerge victorious at this key assist, MATIC may file a ten% slide in the direction of $1.30.
Then again, one other excessive at $1.62 could be anticipated if bulls preserve MATIC inside this sample.
