Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation

The $0.8 and $0.7 areas symbolize areas the place Polygon’s native token MATIC had discovered good demand prior to now. The $0.65 space was visited final July earlier than a 330% rally to achieve $2.93 in December.

It was too early to inform whether or not such an explosive rally might ensue, because the technical construction remained bearish on the charts. Breaking this downtrend might take time, and intense demand could be obligatory for the bulls to mount a comeback.

MATIC- 12 Hour Chart

MATIC forms a bullish reversal candle pattern at the $0.8 support, but follow through could be unlikely

Supply: MATIC/USDT on TradingView

On the charts, we see a gentle downtrend for MATIC since December 2021. In mid-March, a rally was witnessed, however the value was shortly pushed again beneath the $1.58 help stage.

In Could, the value fell beneath the $1.2 space (crimson field), which had acted as a zone of demand in September and October. Furthermore, MATIC examined this zone to verify it as an space of provide and fell beneath the $1 stage as effectively.

Previously few periods, MATIC fashioned a bullish engulfing candle on its bounce from the $0.79 help stage. Such an engulfing signifies robust shopping for stress, however the query is- Can bulls actually comply with by in such bearish situations?

Additional south, beneath the $0.79 stage lies the $0.7 demand zone the place MATIC had rallied from final July.

Rationale

MATIC forms a bullish reversal candle pattern at the $0.8 support, but follow through could be unlikely

Supply: MATIC/USDT on TradingView

The RSI on the 12-hour chart has been beneath impartial 50 since late March. This meant that momentum has been on the facet of the bears prior to now six weeks, and indicated a bearish pattern. Previously few days, the RSI continued to be beneath 50.

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On the identical time, the OBV has been on a gentle downtrend since April started, which meant that promoting quantity was dominant. This was very true prior to now week, because the OBV plummeted. Nevertheless, the CMF, which noticed a steep decline a number of days in the past, picked itself up and was again above the zero mark. Therefore, there was some suggestion of shopping for stress.

The Bollinger bands width indicator has fashioned a collection of upper lows prior to now week, displaying that volatility has been on the rise on this time interval.

Conclusion

The indications and the pattern pointed towards a continuation of the bearish pattern. Volatility was on the rise, and promoting stress remained robust. Imminent ranges of significance are the $0.8 help and $1 resistance, and a transfer previous both stage would possible dictate the path of MATIC within the days or perhaps weeks to come back.

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