- MATIC price began to fashion the handle of a cup base with handle.
- The polygon’s extreme overbought condition on the daily Relative Strength Index (RSI) was eliminated in the May crash.
- MATIC price was 17% off the record after surging 230% from the May 23 low.
The MATIC price remains at the forefront of the cryptocurrency market, despite the 75% crash this month. The rare 230% rebound from the May 23 low and the emerging handle cup base has positioned Polygon with relative strength to print new highs in the days or weeks to come. Only an acceleration in the sale of cryptos will derail the bullish result.
MATIC Award Embraces Growing Hype Around Polygon
Until May 19, the MATIC price led the cryptocurrency complex higher after a decisive breakout of a multi-week consolidation formed in March and April. The Polygon breakout was accompanied by a noticeable increase in volume and generated overbought daily and weekly RSI conditions.
From May 19 to May 23, the price of MATIC fell 75% before hitting support for the 50-day Simple Moving Average (SMA) at $ 0.791 and just above the 61.8% of the April rally. to May at $ 0.693, as well as the 2021 uptrend. line at $ 0.645.
The MATIC price matched the significant correction with a massive 230% rebound, laying the groundwork for the development of the mug base with handle. The right side of the Polygon base is characterized by double digit days on the solid volume, and the grip component forms in the top half of the base on a lower than average volume. The grip may require additional time due to the price compression generated by the steep drop and rapid rebound.
Once the handle is complete, Polygon is ready to step out of the handle mug base with a measured movement target of $ 8,290 from the handle top of $ 2.482, generating a gain of 230% for accomplished investors.
In the path of the measured movement target is the 138.2% extension of May’s correction to $ 4.984, then the 161.8% extension to $ 6.90.
MATIC / USD daily chart
Unfortunately for avid Polygon investors, the MATIC price could become entangled with a new wave of selling pressure in the cryptocurrency market. Support levels include the 50% retracement of the rally from the May 23 low at $ 1.358, the 61.8% retracement at $ 1.178 and the May 19 low at $ 1.011.
In the long term, the MATIC Prize will be supported by Polygon’s growing recognition as a blockchain network with integrated scaling solutions for projects, as well as the recent Google BigQuery announcement and much-discussed investment by Mark Cuban. This makes them a tough target for bearish investors.