After a remarkable bullish trend of 35% in just 7 days, the price of MATIC fell back below $1 after a short period of decline. Losing these important psychological indicators took a toll on the sentiment surrounding Polygon, putting a small dent in its upward trend.
A rejection higher around $1.05 caused Polygon price to quickly reverse and retest the broken range of $0.96. MATIC price predictions remain optimistic for next year as buyers hope for a reversal after a successful retest.
Source – Trading View
A high volume candle supporting a 7-day bull run pushes the MATIC price up to the psychological level of $1. However, the polygon trend has entered a bearish state, with widespread profit booking preventing buyers from processing and absorbing excess supply above $1.
A high price rejection forces MATIC price to retest the broken $0.96 range, so a counterattack from buyers results in a lower price rejection on the daily candle. The bullish bounce puts Polygon’s market cap at $0.9855, limiting its intraday decline to 1.81% as of press time.
Moreover, the lack of volume support for the retest phase increases the likelihood of a bullish reversal. Therefore, there is a possibility of a morning star appearing on the daily chart.
Technical indicators:
MACD indicator: Despite the recent correction, the momentum indicator supports the bullish rally as the MACD and signal line remain positively aligned. However, a brief dip in the bullish histogram is noticeable, reflecting a temporary loss of momentum.
EMA indicator: The bullish crossover of the 50D EMA and 200D EMA is poised to maintain positive alignment and provide dynamic support.
Will MATIC price recovery reach $1.5?
A little before the start of 2024, a retest phase will see MATIC price surpass $1 and poised to begin a high momentum uptrend. This will provide sideline buyers with new entry opportunities and a suitable platform for higher recovery.
Depending on the trend-based Fibonacci extension levels, MATIC price could track a potential target of $1.20, followed by $1.50.
Conversely, a sharp drop below the $0.96 range during the retest phase would intensify selling pressure and lead to a test of the $0.90 mark.