MATIC price encounters selling pressure but Polygon remains on track to $2.5

Polygon (MATIC) price has been under pressure since the end of October after bulls failed to consolidate above the monthly R2 resistance level at $2.20. Since then, MATIC price has been on a downward trajectory, with lower highs and a squeeze against the monthly pivot at $1.78 and a few false tests on the pivotal historical level at $1.75. With the current sentiment in global markets in risk-on and tailwinds blowing from Bitcoin making new highs, expect a pickup in demand and a bullish breakout towards $2.48.

MATIC price bullish pop could hold 48% gains

Polygon price has seen its uptrend treading a bit of water as bulls cannot reclaim new highs. Instead, bears are slightly in control by squeezing MATIC price action to the downside, with evident respect to the red descending trend line. Bulls are unwilling to halt the squeeze for now, as the Relative Strength Index (RSI) has been too long and too far in overbought territory.

MATIC price can use this cooldown to attract fresh buying volume as the RSI is now firmly in neutral territory and nearing the double belt of $1.75-$1.78 of support, bulls will be there to step in and defend the uptrend. Even if the belt of support would break, the yellow ascending trend line can act as fail-safe support for the uptrend and trap bears with a quick reversal to the upside. 

MATIC/USD daily chart

Expect thus MATIC price to dip and test the $1.75 barrier, which could break and see bears flocking in for further shorting. Still, the yellow ascending trend line should act as a fail-safe system and keep the uptrend in check, forming a perfect bear trap in the process. As bulls have been buying the dip, expect a swift reversal to the upside with $2.48 as first level insight.