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The cryptocurrency market trading remains mixed as Bitcoin tackles the key $40k resistance. While the majority of digital assets remain well below established highs before last week’s major declines, MATIC’s price had recovered swiftly from its May 23 lows of $0.74. Matic climbed higher until May 26 following the news of billionaire Mark Cuban’s undisclosed investment in Ethereum Layer 2 polygon and also the launch of the SDK stack. At the time of writing, MATIC was trading at $2.03, down by 2.49% on the day. With a present market cap of $13.31 billion, MATIC has flipped Litecoin to rank 14th largest. Billionaire Mark Cuban admitted that he was a polygon user while also stating that he plans to integrate it into Lazy.com, a Cuban portfolio company that allows people to easily display non-fungible tokens (NFTs).
Key Levels
Resistance Levels: $4.0, $3.50, $3.0
Support Levels: $1.50, $1.00, $0.67
MATIC/USD Daily Chart: Ranging
MATIC/USD Daily Chart
MATIC gapped lower to lows of $1.84 during Thursday trading as short-term traders pulled profits. On a daily timeframe, it looks as if MATIC /USD could be forming bullish cup-and-handle formation. After the pair broke higher in mid-May, it spiked higher to an all-time high of $2.89 on May 19. The MATIC/USD pair then pulled back to lows of $0.74 and began a rounding bottom formation (the cup) back towards the highs. MATIC appears to be currently putting in the “handle” portion of the cup-and-handle formation in today’s retracement.
Because the handle in this pattern formation usually has a downward slope, in the event of the immediate support at $1.86 giving way, a downside break towards $1.50 and $1.01 may come into focus. The strong MA 50 support at $0.92 could put a lid to further losses. However a close above today’s high of $2.48 could target $2.89 and then new all-time highs at $3 and $4. The RSI remains in positive territory suggesting an advantage to the bulls.
MATIC/USD 4-Hour Chart: Ranging
MATIC/USD 4-Hour Chart
The MATIC/USD has formed a cup with a handle pattern on the 4-hour chart and further continuation to the upside may be expected. The ‘Cup and Handle pattern is a bullish continuation pattern that begins with a consolidation period, followed by a breakout. The consolidation period is captured within the handle. The RSI slightly above the mid 50 reading is suggesting possible consolidation.
Technically, the MATIC/USD pair could bounce from the psychological $2 level towards the handle top around $2.45. A close above the $2.45 should move the price towards the all-time highs of $2.89 and ultimately the $3 range. Further bullish moves could target the $5 level. On the downside, MATIC is supported by the $1.86, the MA 50 at $1.68, and the MA 200 at $1.16. Ideally, the MATIC/USD pair should remain above the MA 50 to remain bullish.
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