The cryptocurrency market has shown signs of tension with key technical indicators for Polygon (MATIC) and Solana (SOL) highlighting key moments for these digital assets. Crypto analyst Ali Martinez recently highlighted potential price moves based on current chart patterns and technical indicators.
Polygon (MATIC) Approaches Critical Support
Polygon (MATIC) is currently testing support around $0.34, which coincides with the 1.0 Fib retracement level, a critical point for traders and investors. Recent price action shows a rejection from the 0.786 Fib level around $0.44, indicating continued bearish sentiment.
#Polygon appears to be forming a descending triangle. Keep an eye on the $0.34 support level — if it holds, $POL $MATIC could bounce to $0.94.
However, if it breaks, a correction to $0.19 is possible. pic.twitter.com/70QGdQtsap
— Ali (@ali_charts) September 4, 2024
The formation of a descending triangle on the weekly chart further underscores caution as the descending trendline has been respected several times since 2021, strengthening resistance near the $0.94 level.
If the $0.34 support gives way, Fibonacci extensions point to potential downside targets at $0.2328, $0.1923, and $0.1461. However, if MATIC manages to hold above this support, a bounce to $0.44 could be on the horizon, with $0.65 acting as further resistance.
At the time of writing, Polygon is trading at $0.376176 with a 24-hour trading volume of $234,606,362, ranking it 41st on CoinMarketCap.
Solana (SOL) Sees Potential Rebound
Meanwhile, for Solana, the TD Sequential indicator flashed a buy signal on the daily chart, hinting at a possible short-term bounce. Despite this signal, Solana’s price action has been largely bearish, with the asset recently stabilizing around the $132 level after a series of red candles indicated strong selling pressure.
TD Sequential indicator has given a buy signal on the daily chart of #Solana $SOL, indicating a potential bounce of one to four daily candles. pic.twitter.com/RqVj1gl2N6
— Ali (@ali_charts) September 5, 2024
The candlestick chart shows alternating red and green candles, reflecting the market’s indecision as Solana tries to find its footing.
However, if the current support fails to hold, a correction to $0.19 is possible. Solana’s current price is $133.29, and its 24-hour trading volume is $2,060,035,374, which places it at #5 on CoinMarketCap.
These events demonstrated the delicate balance between support and resistance levels for both MATIC and SOL.
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