Hi friends, hope you are well and welcome to the new update on Matic Network.
Support and resistance levels:
The price action of the Matic Network was very strong bullish from Nov 2020 to May 2021. Finally, it found the resistance at 2.50 dollars and after being rejected by this resistance level the price action re-tested the support of $0.77 and moved up again went very close to the $2.50 resistance, but again failed at this time it is moving above the $1 support level.
Simple moving averages:
On the daily time frame, the price action of Matic has broken down the 25 and 50 simple moving averages and now has very good support of 100 simple moving average. Below the 100 simple moving average, we also have the 200 simple moving average support as well. The 100SMA is working as very strong support for the priceline of Matic for a long time since this bullish move was started. Therefore, this time the price action of the Matic network can again have another bounce from this 100 SMA.
Previous butterfly pattern:
On the 26th of January, I shared an idea when the price action of the Matic token completed the final leg of the bullish Butterfly pattern. This pattern was very big as it was formed on the two-week chart. After visiting the buying zone the price action rallied more than 5000%. This was really huge and legendary trade.
Click here to visit this old idea
After rally:
Gartley pattern:
Now this time on the 4-day time frame chart, the price action has formed the final leg of the bullish Gartley pattern. There is also a 4-day 25 simple moving average support in the buying zone.
The buying and sell targets of this pattern are as below:
Buy between: $1.19 to 0.7825
Sell between: $1.51 to $2.28
And the maximum extent of the potential reversal zone $1.25 can be used as stop loss. As per the above targets, this trade has a big profit possibility of 191%, and the high loss possibility is 35%.
Conclusion:
In the month of May, when all the cryptocurrencies were moving down the Matic token was alone moving towards the upside. However, eventually, the price of Matic followed the market trend and dropped at $1 support. At the same time, the priceline has formed a bullish harmonic pattern therefore now we can expect another bullish reversal from here.
In order to play and watch the current performance of the chart you need at least a free account on tradingview:
https://www.tradingview.com/gopro/?share_your_love=moon333
KuCoin is one of the best exchange to find crypto gems:
https://www.kucoin.com/ucenter/signup?rcode=rJSDVT3
Link for Binance exchange, to trade crypto:
https://www.binance.com/?ref=11256882
Note: Above idea is for educational purpose only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.