Polygon (MATIC) – Activated a short-term double bottom formationPosted on Tuesday, January 11 2022 at 9:39 pm GMT+0000
Polygon (MATIC) powered back after the sharp post-all-time high retracement came to an end at 1.89 on Saturday. The price snapped the return line of the last 20 days downward channel and the previous inside swing high at 2.17 confirming a double bottom formation on the four-hour chart.
Technical indicators are favoring further advances in the short-term as the 20-period exponential moving average shifted north setting the stage for a bullish intersection with the 40-period average. Moreover, the short-term oscillators are implying that bullish momentum is growing. The MACD is progressing beyond its signal line and the RSI is ramping up towards the 70 overbought threshold.
Bulls crossed half of the way towards the initial target of the famous aforementioned bullish reversal formation at 2.45 and will soon claim it. Next, they will likely steer the price towards the December 31st intraday swing high of 2.67. At that point, odds will increase for a retest of the 2.92 all-time high.
On the other hand, if the bullish forces start to wane and the price reverses lower, the 40-period exponential moving average will step in and attempt to catch the fall. Should it fail to hold, the focus will shift back towards the 1.93 – 1.89 support base. Any step lower will downgrade the short-term outlook and pave the way for steeper declines. If that’s the case, the 1.70 – 1.74 key support section will initially come under the radar.
To summarize, Polygon is currently sending clear bullish vibes in the short-term picture and the current rally should at least see an extension towards the 2.45 level.