Polygon eyes bullish breakout that pushes MATIC price to $1.65
|- Polygon price targets a close above the daily Kijun-Sen
- Possible right shoulder formed if Polygon returns to $1.65
- Bullish cross on Composite Index
Polygon price has increased as much as +25% from the lows on Tuesday ($1.1870). Bulls have sustained Polygon above the top of the Cloud (Senkou Span A) and yesterday, closed Polygon above the Tenkan-Sen. The next bullish Ichimoku condition for traders is a daily close above the Kijun-Sen.
Polygon price limited to $1.65, hidden bearish divergence signal bearish takeover
Polygon price may have difficulty moving above the $1.65 value area. A shared resistance area at $1.65 matches the prior swing highs found between August 21st and August 24th. In addition, the 50% Fibonacci retracement from the July 10th swing low to the high of the daily strong bar on May 19th is at $1.6340. But before Polygon can reach the resistance levels near $1.65, bulls must first contend with the nearby selling pressure that will occur against the daily Kijun-Sen at $1.46.
Bulls and bears may feel a little pressure between $1.40 and $1.46. There are several very near-term support levels between $1.37 and $1.40: Senkou Span A, the daily Tenkan-Sen, and the 38.2% Fibonacci retracement.
Polygon/USDT Daily Ichimoku Chart
Bulls will want to pay attention to the Relative Strength Index and the Composite Index. The Relative Strength Index is trading just a hair above the first oversold condition in a bull market (50), but bulls are not showing a convincing support level here. If bulls push Polygon above the Kijun-Sen, then the Composite Index will create a hidden bearish divergence - signaling a warning that downside momentum may return.
Bears can easily reassume control and push Polygon south if bulls fail to hold Polygon price above at least the Tenkan-Sen at $1.37. Below that, a return to $1.20 is inevitable.
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