Polygon's MATIC, a Layer 2 solution for the Ehtereum network that promises the fast execution of complex smart contracts for lower gas fees, is trading inside a bull pennant through midday of the 05/04 session.
Price action is down over the last few hours, breaking just below the pennant. This may be an attempt to induce some panic selling and build longs at lower price. On the 1H and the 15M, we can clearly see a W pattern forming. To verify the reversal pattern, the price must rise to complete the last leg of the W. This would also send MATIC out of its pennant towards new all-time highs.
Looking at the Fibonacci levels, we can expect to find support at .698 and .6215. A break below .69 could quickly send price to .436, while a breakout of the pennant will put price back in discovery mode where it will seek to test .96 and then $1.03. A strong rally would look to send price to a zone between $1.22 and $1.36.
The $0.70 to $0.74 zone it is trading in now is the base of support it used to push to its ATH of .9475 and it will spend some time today re-testing this zone to determine its next move.
