A series of lower highs and higher lows identified a symmetrical triangle for MATIC. This setup translated to a possible breakout scenario moving forward. At the time of writing, MATIC traded at $1.35, up by 3.4% over the last 24 hours.
MATIC 4-hour Chart
MATIC’s lower highs at $1.50 and $1.44 combined with higher lows at $1.04 and $1.16 gave rise to a symmetrical triangle setup . Based on MATIC’s progress within the pattern, the next lower high was currently in development.
Ideally, a move above the 50-SMA (yellow) would allow MATIC to tag the Visible Range’s POC at $1.352, setting a lower peak in the process. If MATIC continues to add on more volumes on its way up to $1.35, an early breakout could see MATIC surge towards its September high of $1.50.
However, the visible range noted a significant chunk of selling pressure present for MATIC between $1.35 and $1.49. Hence, the alt would require a sustained bullish effort in order to milk value from its current setup. If an early breakout is rejected, expect MATIC to oscillate within the pattern and enter a consolidation phase before the breakout.
On the other hand, MATIC would be exposed to a 16%-20% drawdown in case bears are able to slice below $1.16. Buyers could then look to hit back at a defensive region of $1.038.
Now, over the past few sessions, MATIC’s indicators were recovering from bearish positions. The MACD and Awesome Oscillator identified a burst of upwards pressure in the market. However, the RSI was yet to solidify a clear bullish trend. Hence, a cautious tone should be maintained.
Based on MATIC’s indicators, a newer high was anticipated around the $1.35-mark. If MATIC is able to generate strong volumes on its ascent to the upper trendline, an early upwards breakout would certainly be achievable. In either case, traders move with caution as the RSI was yet to climb above 55 and near-term retracement looked within the realms of possibility.