Bears Hold the Bulls, MATIC Breaks Out of Bullish Falling Wedge

Polygon (MATIC) opened the week trading at $0.8. During the first three days of the week, MATIC fluctuated in the red zone touching the green zone on rare occasions. In the course of its descent, MATIC reached $0.7749 as the lowest price for the week.

Interestingly, as shown below in the chart, the token gained some momentum during the second day of the week. Although during this phase, the bulls weren’t able to push MATIC higher but were able to consolidate its prices.

However, the second half of the week was totally different from the first half as the bulls defied the bears and MATIC gained some momentum. As such, MATIC spiked from $0.8031 to 0.8061 in just a few hours.

MATIC/USDT 7-day Trading Chart (Source: CoinMarketCap)

MATIC traded in a bullish falling wedge in early November, as shown in the chart below. However, once it broke from it, the bears did not let the bulls run rampant from late November to mid-December.

MATIC/USDT 1h Trading Chart (Source: TradingView )

MATIC was only able to test the 200-day MA (green circle) on numerous occasions. Even when MATIC broke the 200-day MA (red elliptical), the bears made sure that MATIC did not leverage its breakout.

On the flip side, the bulls also fought hard to keep MATIC tanking below support 1. Due to the hard-fought battle by the bulls, MATIC moved sideways, fluctuating between the 200-day MA and support 1 from mid-December to early January.

MATIC broke out of the 200-day MA for the first time in 2023 on January 9. If the bulls push harder, MATIC could reach resistance 1 (≈$0.95), and with more pressure from the bulls, MATIC may rise to resistance 2 (≈$1.1). However, MATIC has touched the upper Bollinger band, hence the market could correct the prices.

Though MATIC touched the upper Bollinger band, it has not still reached the overbought region. The RSI is at 67.75 and is tilting down. As such, MATIC may still surge.

Contrarily, if the bears take over, MATIC may crash below the 200-day MA and fall on support 1.

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