Over the last seven weeks, Polygon [MATIC] marked a streak of higher highs and troughs that approached its daily 200 EMA (green). This trend-altering recovery provoked a much-needed bullish flip on the EMA ribbons.
The previous ascending triangle setup gave bulls enough impetus to reclaiming the $0.74 support level.
A plausible rebound from the immediate trendline support (white) could witness a sluggish phase with resistance in the $1.04-zone.
At press time, MATIC was trading at $0.0, down by 1.7% in the last 24 hours.
MATIC Daily Chart
Source: TradingView, MATIC/USDT
The recent ascending triangle breakout reignited the bullish pressure as the buying volumes saw an uptick. The broader sentiment aided the buyers in recouping to provoke a bullish flag setup on the chart.
This bullish pattern propelled a further breakout. But with the 200 EMA resistance joining hands with the $1.04-$0.95 range resistance, MATIC could see a stiff hurdle in the coming sessions.
However, historical bullish flips on the EMA have ensured near-term support in the 20 EMA zone. So, the alt could continue its compression in the $0.8-$1 range before committing itself to a trend.
A potential drop below the trendline support could trigger a near-term decline toward the $0.74-level before a likely reversal. On the flip side, an eventual close above the $1.04 level or the 200 EMA can inflict a test of the $1.1-resistance.
All in all, to ensure a continued revival, the trendline support, and the near-term EMAs must work in sync as a rebounding zone.
Rationale
Source: TradingView, MATIC/USDT
The Relative Strength Index’s (RSI) decline from the overbought region ensured its position above the midline to depict a slight buying edge. A sustained position above the 58-mark support could continue supporting the near-term buying endeavors.
Further, the Chaikin Money Flow (CMF) marked lower
