MATIC Technical Analysis – August 2021
Daily Analysis
The recent bullish run of MATIC saw it increase by 170% to $1.70 in just one month. However, the price of MATIC has now slightly dipped and it is going to test key structures to determine whether it may go further down or if it may rebound to that range once again.
Intraday Thoughts
In an intraday chart, MATIC has been quite volatile, benefitting day traders with the recent correction after finding support at $1.30. This level of support is going to be key for MATIC in its future price.
Key Structures for Polygon
Support
- $1.30, $1.19, $1.06
Resistance
- $1.55, $1.70, $1.88
Indicators
Moving Average
The 20-MA in a 4-hour chart was above the price due to the recent downtrend and acted as resistance, but now it is below the price due to the recent correction. This might hint at a possible reversal. The 9-day moving average is equal to the current price of MATIC at $1.43.
Relative Strength Index
The RSI is fairly average, indicating that there is room for both a price increase and a price decrease. Due to the recent correction, the RSI has slightly increased, and it may keep increasing even more if MATIC is set to retest previous resistance.
MACD
The signal line is above the MACD line, indicating that the latter may soon move below its baseline. If this momentum continues, then MATIC might keep decreasing in the short term.
Fibonacci
Looking at the Fibonacci retracement from the recent bullish run of MATIC, we can see that the 38.2% level has acted as support. Both the 50% and the 61.8% may act as structures of support as well since they align with previous key structures.
When looking at the recent downtrend and the Fibonacci retracement, the 61.8% might prove to be a good level of resistance for MATIC.
Head And Shoulders
From the recent price pattern, we can also notice a possible head-and-shoulders pattern. The neckline is at around $1.30, so MATIC can find support there. If that level is penetrated, then MATIC might be looking to head further down.
Double Bottom
A possible double bottom might also occur for MATIC. The price has already reacted positively from the recent support, but time can tell if the trend might be reversed or not.
Elliot Waves
From July 20th when the uptrend started, we can notice Elliot waves forming for MATIC. Furthermore, these waves were then followed by correction waves A, B, and C.
Price Prediction Polygon – August 2021
MATIC might first retest the resistance at $1.55. However, the price might decline to $1.30 again. If it finds support there again, then we might see MATIC head towards higher to at least $1.80. Nevertheless, the current channel is descending and it is entirely possible that MATIC can go to $1.20 for a short period and then rebound again.
Latest News for Polygon – Affecting Price
Recently, Polygon network has announced a partnership with Flurry Finance in order to improve the yield farming of the DeFi sector in Polygon. Since DeFi is becoming more important every day, such partnerships can boost the price of MATIC even more in the longer run.
If you want to learn more about Polygon (MATIC), check out this fundamental analysis and its long-term price prediction:
Polygon (MATIC) Price Prediction 2021 and Beyond – Will MATIC Reach $10 in 2021?