MATIC price is staging a strong recovery towards new record highs while a bullish histogram pattern is emerging.
The next target is $2.95
MATIC has formed a cup in hand on the 4-hour chart and forecasts a 21% rally towards a new ATH of $2.95. The upside target will only be validated if the token breaks above the pattern neckline at $2.43.
The Arms Index (TRIN) indicator is showing that there are more buyers than sellers in the market, which suggests that the MATIC price is preparing for a rally.
The first line of resistance to appear after MATIC price cuts beyond the neckline will come in at the 78.6% Fibonacci retracement level at $2.51. Polygon will face another challenge at its January 3rd high of $2.59.
Another hurdle will emerge at the Dec 24 high at $2.73. MATIC price might face another hurdle at the 127.2% Fibonacci extension at $2.88, which also coincides with the resistance line on the Momentum Reversal Indicator (MRI).
Polygon could also face additional headwinds at a record high of $2.92 before attempting a fresh high.
However, if selling pressure increases, MATIC price will find immediate support at the 61.8% Fib retracement level at $2.38 and then at the 200 – 4h SMA Simple Moving Average at $2.38.35.
Additional defensive measures could arise at the four-hour 21 SMA and the four-hour 100 SMA, which are near the 50% retracement at $2.29.
If Polygon slides lower, there is support at the 50-4 hour SMA at $2.24, then at the 38.2% Fib retracement level at $2.19, coinciding with the MRI support line.
However, investors should note that bullish forecasts could be invalidated if MATIC price falls below the above last defense.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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