MATIC Gearing Up to Rally? Believe. (TA 06/04/21)

By JCRoemer | JCR's Crypto Musings | 4 Jun 2021


With MATIC 35% off its high after the Great Crypto Crash of May 2021, the coin is struggling to regain it's $2 price point. However, the coin is consolidating in an extremely tight channel, as we see on the 1H:

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Notice how tightly MATIC is trading between its moving averages on the 1h? If you pull back to the 4H, you'll observe that it's trading tightly between those moving averages too:

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It would also be wise to note the declining wedge forming from May 17 onward. However, we can not ignore the fact that volume is dipping, a bearish signal as we approach the right end of the declining wedge, which in itself is a bullish signal as price is finding excellent support at 1.60. 

Consolidation channels can frequently signal breakouts, especially with rising volume. One of the keys to a potential MATIC rally would be increasing volume to bust out of the wedge. We'll be watching volume very closely over the next few days. 

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The moving averages are really tightening up. While MATIC faces obstacles on the way up, rising volume at this point would most certainly propel price up out of the rising wedge and put MATIC back into a bull rally. 

Failure to break out of this zone could send price below $1.50. Currently we are just under the 50 EMA on the 1H, which isn't the worst time to enter if you believe that MATIC is consolidating and winding up for another rally. 

 

 

 

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JCRoemer
JCRoemer

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JCR's Crypto Musings
JCR's Crypto Musings

A collections of thoughts, ideas, and analysis of various crypto projects. Opinions are my own. Not financial advice.

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