Polygon (MATIC) – Trying to set a foothold around the 38.2% Fibonacci levelPosted on Thursday, December 30 2021 at 10:10 pm GMT+0000
Polygon (MATIC) is trying to set a foothold around the 38.2% Fibonacci retracement level of the 1.44-2.92, having withdrawn slightly after posting a new all-time high a few days ago.
Despite the current minor price depreciation, the technical picture is still upbeat, and the advancing exponential moving averages are shielding the positive structure of consecutive higher highs and lows.
So, dip-buyers will likely return with vengeance following a decisive daily close above the 2.63 level. Those will push the price again into uncharted waters after successfully conquering the 2.92 peak, precisely towards the 161.8% Fibonacci extension level of the last down-leg at 3.24.
In other encouraging signs, short-term oscillators are suggesting some improvement in positive impetus. The momentum indicator is improving in the positive region and the RSI paused the decline some distance above the 50 threshold.
However, a deeper correction will evolve following an immediate drop below the 38.2% Fibonacci level at 2.36 and the adjacent 20-day exponential moving average. If that’s the case, the 61.8% Fibonacci level at 2.01 will try to catch the fall ahead of the December 14th low of 1.73. Any violation at that point will seriously dampen the current structure.
To summarize, Polygon is sustaining a strong bullish structure, and a decisive move above the 2.63 will pave the way towards new record heights, yet a drop below 2.36 will trigger a steeper correction.