Polygon might gain more downward momentum if MATIC stabilizes beneath the $2.0 mark.
Polygon (MATIC) attempts to rebound following the latest pullback. However, the technical outlook appears risky despite the latest positivity on the fundamental side.
Polygon Couldn’t Rally Despite Catalysts
Polygon network introduced the EIP-1559 on 18 January. Moreover, the platform has attracted around 500K daily users as it sees continued popularity growth. However, the optimistic catalysts could not offer MATIC price dependable support as the crypto market experiences pressure because of the surging Treasury yields.
Bitcoin, the world’s largest coin, remained around the $41K and $44K range. Meanwhile, altcoins battle to rise higher. The mixed reactions have the overall crypto market capitalization under the psychological level of $2 trillion. While publishing this article, the market cap hovers at $1.99 trillion, following a 1.86% surge over the previous 24 hours.
MATIC Daily Chart
The daily price chart shows MATIC developing a classic head-shoulder setup. The pattern emerges when an asset prints three local highs. Moreover, the second peak should be the highest. Here the shoulders appear nearly the same zone, making it easy to notice the pattern. The head-shoulder formation shows increasing trend reversal risks.
If MATIC settles beneath its closest support at $2.0, it might plunge towards the following barrier around the latest lows near $1.90. Testing this level might clear the road towards the foothold at $1.83. On the other hand, the closest resistance zone to the upside stands at $2.15.
A decisive move beyond this zone will see MATIC approaching the resistance around the 50 exponential moving average at $2.20. Overcoming this value level will have the altcoin climbing towards the resistance at 20 exponential moving average around $2.24.
Nevertheless, the overall trend suggests a massive move by MATIC past the latest peaks of $2.45 to diminish the head-shoulder formation and gain additional surging momentum. With that, the alternative coin might push towards its 2021 December highs.
The broad market trend will detect MATIC’s decisive move. For now, the crypto spectrum flashes green. While publishing this analysis, the total crypt market capitalization stands at $1.99 trillion, following a 0.57% surge within the past 24 hours.
Editorial credit: Dennis Diatel / shutterstock.com