Despite the recent breakout with the market recovery, the MATIC coin price found a bearish setback sooner than expected. The sudden bearish takeover reflects the weakness in buying spirit and warns of a sharp correction.
The higher price rejections leading to the 5.65% drop in MATIC price attempts to nullify the breakout signal. Threatening the spirit of Uptober rally, the sudden market-wide correction raises doubt against MATIC price predictions hinting at $1 in 2023.
The MATIC price jump with the double bottom breakout fails to exceed the 50-day EMA, leading to a downside reversal. Moreover, the higher price rejections close to $0.60 reflect a huge supply inflow undermining the recovery rally.
With long wicks, the Polygon prices shadow a double top pattern during the consolidation at the 50-day EMA. Additionally, last night’s recently formed bearish engulfing candle gives the double top’s downside break.
With the crucial bullish support at $0.49, the Polygon prices tease a sideways trend with the overhead ceiling at $0.60. The MATIC price is currently trading at $0.5306 with an intraday move of 0.25%, leading to a negligible relief.
Technical indicators:
RSI indicator: The daily RSI line maintains a positive trend and avoids reciprocating the Polygon price trend. Leading to a bullish divergence, the indicator teases a bullish comeback for Poylgon from $0.50.
EMA indicator: The falling trend in the 50-day and 200-day EMAs remains a crucial catalyst of bearish reversal and provides supply inflow.
Will MATIC Price Sustain Above $0.50?
Despite the recent recovery, the ongoing uptrend in the MATIC price displays a bearish attack with the intent to undermine the channel breakout. The high momentum bear phase currently warns of a correction to the psychological mark of $0.50. A slip below this level will plunge Polygon to $0.46.
On the positive side, reversing from $0.50 or an early reversal will rechallenge the $0.60 resistance zone.
