How MATIC buyers can leverage this strategy to stay profitable

Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.

In the past three months, Polygon [MATIC] the bulls have restored their edge against the 14-month support at the $0.34 level. The resulting return to buying propelled an uptrend that helped MATIC retest the 200 EMA (green).

The altcoin has now entered a critical level in the range of $0.7 to $0.76. MATIC could likely experience a dull phase given the confluence of resistances in the $0.76 area. At press time, MATIC was trading at $0.7551.

MATIC daily chart

Source: TradingView, MATIC/USDT

Previous growth from the breakout of the ascending channel helped the MATIC bulls break through the $0.7-$0.76 range and tip it towards support. Since then, this range has supported MATIC’s retracement over the past month.

After reversing from the 200 EMA resistance barrier, the coin struggled to mount a robust buy rally. After a brief swing in the descending channel, the 20 EMA (red) fell below the 50 EMA (cyan) to represent a selling advantage.

With these EMAs still facing south, sellers may aim to limit buying rallies in the $0.79-$0.81 range. A close below the $0.7 mark would position the coin for a short-term decline. In this case, the potential target would be in the region of $0.607.

A possible close below the $0.81 mark may cause a bearish invalidation. Bulls need to increase buying volumes to maintain a close above the immediate resistance range. Under these circumstances, buyers would look to retest the 200 EMA ahead of a likely reversal.

Reasoning

Source: TradingView, MATIC/USDT

The Relative Strength Index (RSI) marked some improvements as he sought to test his balance. A close above the 50 point resistance would confirm a change in momentum.

Additionally, the Chaikin Money Flow (CMF) position above the zero bar also resonated with the growing bullish strength. Nevertheless, MACD had not yet undertaken a bullish crossover. Buyers should look for this cross before going long.

Conclusion

MATIC’s position below the 20/50/200 EMA represented a broader bearish edge. A drop below the reference value of $0.7 would restart the short-term downtrend.

On the other hand, a close above the $0.81 mark would hint at short-term bearish invalidation. The targets would remain the same as discussed.

Finally, investors/traders should keep a close eye on Bitcoin’s movement, as MATIC shares a 78% 30-day correlation with the master coin.

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