MATIC POLYGON * WEEKLY TF EWP TC FIB ANALYSIS
The chart provided is an Elliott Wave analysis applied to the price action of the cryptocurrency MATIC, on the Polygon network, in a weekly time frame:
1. Elliott Wave Structure
• The chart shows a corrective pattern (denoted as A-B-C or W-X-Y), which is a retracement in an overall bullish market.
• The price action is nearing the end of a corrective wave (Y), with a potential reversal point forming in the orange box.
2. Channels and Trendlines
• The price movement is contained within a corrective channel.
• The long-term trend is shown by the upward green channel, indicating that after the correction, a return to a bullish movement is expected.
3. Fibonacci Levels
• Multiple Fibonacci retracement levels are drawn on the chart to guide potential support and resistance zones.
• The 0.5, and 0.618 Fibonacci levels are significant for both resistance and support, with prices currently near the 0.618 level.
• The price is also interacting with a pivot zone (shown by the orange labels), and could potentially reach the P level at $0.446 before bouncing.
4. RSI (Relative Strength Index)
• The RSI indicator at the bottom shows the market is nearing oversold territory (below 40), indicating that the selling pressure may be exhausting and a bounce could be imminent.
5. Price Target
• The a curved arrow at the bottom indicating a bullish reversal potential, suggesting that after this final leg down, the price could shoot back up to the previous highs and beyond.
• The upper target for a bullish breakout seems to be around the $2.714 level, based on previous wave (B) highs, with an extension potentially aiming toward the $5 level and beyond.
6. Support Zones
• The orange box (around $0.191 to $0.26) represents a critical support area, where a reversal might happen.
• If the price fails to hold this zone, the next support level is around $0.0454, which appears to be the ultimate bottom level of the correction.
Conclusion:
This chart suggests that the current corrective phase is nearing completion, and there is a strong possibility of a bullish reversal from the $0.191-$0.26 support zone. If this area holds, the price is projected to rally upwards, potentially targeting $2.7 and beyond in the next impulsive move.
1. Elliott Wave Structure
• The chart shows a corrective pattern (denoted as A-B-C or W-X-Y), which is a retracement in an overall bullish market.
• The price action is nearing the end of a corrective wave (Y), with a potential reversal point forming in the orange box.
2. Channels and Trendlines
• The price movement is contained within a corrective channel.
• The long-term trend is shown by the upward green channel, indicating that after the correction, a return to a bullish movement is expected.
3. Fibonacci Levels
• Multiple Fibonacci retracement levels are drawn on the chart to guide potential support and resistance zones.
• The 0.5, and 0.618 Fibonacci levels are significant for both resistance and support, with prices currently near the 0.618 level.
• The price is also interacting with a pivot zone (shown by the orange labels), and could potentially reach the P level at $0.446 before bouncing.
4. RSI (Relative Strength Index)
• The RSI indicator at the bottom shows the market is nearing oversold territory (below 40), indicating that the selling pressure may be exhausting and a bounce could be imminent.
5. Price Target
• The a curved arrow at the bottom indicating a bullish reversal potential, suggesting that after this final leg down, the price could shoot back up to the previous highs and beyond.
• The upper target for a bullish breakout seems to be around the $2.714 level, based on previous wave (B) highs, with an extension potentially aiming toward the $5 level and beyond.
6. Support Zones
• The orange box (around $0.191 to $0.26) represents a critical support area, where a reversal might happen.
• If the price fails to hold this zone, the next support level is around $0.0454, which appears to be the ultimate bottom level of the correction.
Conclusion:
This chart suggests that the current corrective phase is nearing completion, and there is a strong possibility of a bullish reversal from the $0.191-$0.26 support zone. If this area holds, the price is projected to rally upwards, potentially targeting $2.7 and beyond in the next impulsive move.
In technical analysis, several methods focus on higher timeframes to provide a broader, more reliable context for trading or investment decisions. Elliott Wave Principle generally considers historical higher timeframes as mandatory.
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