Altcoins

Is HODLing MATIC the way to go? These indications suggest otherwise

As foreseen within the earlier article, MATIC continued its downward trajectory in the direction of the 61.8% Fibonacci assist whereas breaking down from the bearish flag on its every day chart.

From right here on, MATIC aimed to retest the essential $1.45-$1.52 vary close to its Level of management (POC, pink) earlier than positioning itself to make a pattern committal transfer. If the bulls fail to step on this vary and counter the sell-off, the alt would seemingly succumb to its prevalent bearish tendencies. At press time, MATIC traded at $1.631, up by 11.27% within the final 24 hours.

MATIC Each day Chart

MATICUSDT 2022 03 01 18 43 11

Supply: TradingView, MATIC/USDT

The current bearish flag reaffirmed the promoting spree as MATIC fell under its 20-50-200 EMA to check the $1.4-support. Publish an over 57% decline from its ATH, MATIC picked itself up from the $1.2-mark after hitting its 4-month low on 24 February.

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Since then, the bulls have been eager on reclaiming the very important 61.8% Fibonacci assist. Thus, the alt noticed a powerful rejection of decrease costs because it jumped above its long-term POC. Accordingly, a sustained shut above the 20 EMA might propel a rally in the direction of the 50 EMA earlier than a pullback into its downtrend.

It turns into very important to notice that the 20 EMA (pink) fell under the 200 EMA (yellow) after over 13 months. This trajectory hinted on the rising bearish affect over the previous weeks. Furthermore, the current worth actions undertook a hidden bearish divergence (yellow trendline) with its every day RSI. 

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Preserving this in thoughts, a doable take a look at in the direction of the POC could be possible within the days to return. Additionally, the present worth is close to all its EMAs, rising the possibilities of a risky transfer sooner or later. Ought to the bears dwindle, a retest of the 50 EMA earlier than falling in the direction of the 61.8% assist could be seemingly.

Rationale

Capture scaled

Supply: TradingView, MATIC/USDT

The RSI broke out of its down-channel however was but to cross the equilibrium and make sure the bullish edge. A fall under its trendline resistance (yellow) would corroborate a hidden bearish divergence that may take a look at the 45-47 vary assist.

Additionally, the CMF withdrew itself from above the zero-line and likewise fashioned a divergence with the rising worth. This motion confirmed a bearish inclination.

Conclusion

Contemplating the confluence created between the divergences on the RSI and CMF, a take a look at of the $1.45-$1.52 vary could be seemingly within the days to return. However the traders/merchants should preserve an in depth eye on Bitcoin’s motion as MATIC shares a whopping 90% 30-day correlation with the King coin.

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