Polygon (MATIC) – Looking for new uncharted heightsPosted on Wednesday, December 22 2021 at 9:25 pm GMT+0000
Polygon (MATIC) has been developing in an ascending channel creating higher highs and higher lows. The healthy bullish zig-zag course is hinting for a break above the channel upper line and the all-time high.
The MACD is strengthening above its signal line in the positive region, the RSI is ramping up to meet the 70 threshold and the stochastic oscillator’s %K line has climbed into overbought territory favoring additional bullish actions.
Hence, a decisive close beyond the ascending line and the 8th of December high of 2.58 will reinforce the current bullish structure, likely producing another bullish extension towards the Fibonacci golden number at 3.09. Beyond that, traders will target the 227.2% Fibonacci extension at 3.62.
Otherwise, should the bulls lose the battle with the aforementioned line, the nearby October 29th high of 2.22 may try to provide support. Should it fail to hold, the 14th of December low and the channel lower line will attempt to block the way down around 1.75. Any violation at that point will dismantle the bullish structure and open the way for a steeper decline.
In brief, Polygon is strengthening its bullish trend in the medium-term picture, a decisive break of the channel will open up for new uncharted heights.