Polygon (MATIC) price has been in a bullish rally in the last 24 hours after finding support at the $0.6651 level. The cryptocurrency has, as a result, surged by 8.37%, reaching a current price of $0.746997 with a trading volume of $497,327,971. This surge marks a significant rebound from the recent downtrend, indicating renewed investor interest and potential market momentum.

MATIC/USD 24-hour price chart (source: CoinMarketCap)

Price Action and Key Levels

Analyzing the price action, MATIC has been navigating a bearish trend characterized by lower highs and lower lows. However, the recent bounce from the support level at $0.6651 suggests a potential reversal or at least a temporary relief from the downward pressure. Traders are closely monitoring key levels, including the resistance at $1.10 and support at $0.72, to gauge the strength of the current rally and assess potential entry or exit points.

Technical Indicators Trend

The Keltner Channels (KC) on the chart provide valuable insights into volatility and trend strength. Currently, the price is below the middle line of the Keltner Channel (20-period Exponential Moving Average), indicating a bearish sentiment. 

However, traders are eyeing the lower band of the Keltner Channel around $0.72, which may signal an oversold condition and a potential opportunity for a bounce back if buyers perceive value at this level.

MATIC/USD price chart

Meanwhile, the Chaikin Money Flow (CMF) indicator, positioned below the zero line, reflects a dominance of selling pressure over buying pressure, supporting the overall bearish trend. However, traders are attentive to any potential divergence where the price stabilizes or increases. At the same time, the CMF begins to rise, suggesting a shift in buying pressure that could precede a reversal in the price action.

Potential Trend Analysis and Critical Observations

Despite the recent bullish rally, critical observations indicate that the overall trend remains bearish. The price has consistently closed below the middle line of the Keltner Channel, reinforcing the downward trajectory. Additionally, the CMF being below zero underscores the prevailing selling pressure in the market.

Traders are closely monitoring the $0.72 support level for signs of a sustained bounce or a breakdown. A failure to hold this level could signal a continuation of the bearish trend, potentially leading to new lows. Conversely, a successful rebound from this support could confirm a short-term reversal and pave the way for further upside momentum.

MATIC/USD 24-hour price chart (source: TradingView)

The Williams Alligator indicator, comprised of three smoothed moving averages, confirms the bearish phase, with all three lines aligned downward. The price is currently trading below all three moving averages, reinforcing the prevailing downtrend. Traders are attentive to any convergence or crossing of the Alligator lines, which could signal a potential weakening of the bearish momentum.

Similarly, the Moving Average Convergence Divergence (MACD) indicator supports the bearish outlook, with the MACD below the signal line and expanding negatively. Increasing red histogram bars indicate growing bearish momentum, highlighting the potential for further downside movement in the near term.