MATIC price could be preparing for a major rally if buying pressure increases.
A key technical indicator suggests that MATIC has recently formed a local bottom.
MATIC price has recently formed a local bottom according to a key technical indicator, suggesting that Polygon is ready for a bullish reversal. The token could tag the upper boundary of the governing technical pattern at $2.32 next if it slices above crucial resistance levels.
MATIC price forms local bottom
MATIC price has formed an ascending parallel channel on the 12-hour chart, projecting a bullish outlook. Polygon could target the upper boundary of the prevailing chart pattern at $2.32 next, coinciding with the 127.2% Fibonacci extension level.
Polygon has tagged the lower boundary of the governing technical pattern at $1.59 as support on February 14. At the same time, while MATIC price reached the swing low, the Momentum Reversal Indicator (MRI) has flashed a bottom signal, suggesting the token is preparing for a reversal.
MATIC price will face immediate resistance at the 21 twelve-hour Simple Moving Average (SMA) at $1.79, intersecting with the 61.8% Fibonacci retracement level. Additional hurdles may emerge at the middle boundary of the governing technical pattern at $1.93, coinciding with the 78.6% Fibonacci retracement level.
Polygon will face additional headwinds at $2.00, where the 100 twelve-hour SMA and the 200 twelve-hour SMA intersect, then at the resistance line given by the MRI at $2.10. Only if MATIC price manages to overcome the aforementioned challenges would see the token reach the optimistic target at $2.32.
