Technical analysis is an essential tool for investors, especially those trading in the futures market, in the cryptocurrency market. So, what does technical analysis tell us about Polygon (MATIC), currently trading at $0.8726, and Avax, trading at $22.52? Let’s take a detailed look at their charts, important support and resistance levels.
Polygon (MATIC) Chart Analysis
The first notable formation on the two-hour chart of MATIC is the ascending channel pattern. Despite the recent decline, MATIC is still experiencing a crucial phase, with significant support in focus. The absence of any bear or bull traps in the formation structure highlights its importance. However, a breakdown of support will lead to a substantial price drop for MATIC.
The notable support levels for MATIC are $0.8651, $0.8411, and $0.8025, respectively. Particularly, a two-hour candlestick closing below $0.8651 will cause a significant loss of momentum in the price. However, the real danger will occur if the candlestick closes below $0.8411.
The resistance levels to watch for MATIC are $0.8862, $0.9238, and $0.9630, respectively. Especially, a two-hour candlestick closing above the significant obstacle at $0.9630 will contribute to a significant momentum gain in MATIC’s price.
Avax Chart Analysis
AVAX experienced a significant momentum gain with the breakout of the descending channel formation. Despite the EMA 200 level being at $12.24 (red line), AVAX is currently trading at $22.47 due to recent upward movements. However, a noticeable decline is observed in the recent candlestick formations.
The important support levels to pay attention to for AVAX are $19.82, $17.75, and $16.13, respectively. Especially, a candlestick closing below $19.82, along with remaining below the EMA 7 and EMA 21 levels, may lead to a significant loss of momentum for AVAX.
The resistance levels to monitor for AVAX are $24.06 and $26.31, respectively. Particularly, a closing above the significant obstacle at $24.06, witnessed during the recent upward movement, will enable AVAX to gain momentum.
