MATIC price crash triggers buying spree, 20% upswing likely
|- MATIC price has recovered above the $0.722 support level after a minor deviation below it.
- This move hints at the start of a recovery rally to the $0.906 and $1.050 levels.
- If Polygon flips the $0.729 barrier into a resistance level, it will invalidate the bullish thesis.
MATIC price swept a crucial support level on September 21 after the FOMC meeting, which caused sidelined buyers to step in. As a result, Polygon has recovered quickly above the said barrier and is currently looking to flip another hurdle.
MATIC price to climb higher
MATIC price deviated below the $0.758 to $1.050 range on September 18 and was hovering below it. As Bitcoin price took a nosedive on September 21, so did many altcoins, including Polygon.
As a result, the Layer 2 token swept the $0.722 support floor to collect the sell-stop liquidity. This move was followed by a spike in buying pressure coupled with Bitcoin price flipping bullish, leading to a 9% run-up.
Going forward, investors should pay close attention to MATIC price recovery above the range low at $0.758. A decisive flip of this level will indicate that the bulls are back and that the uptrend is about to begin.
In such a case, the uptrend will likely pause around the midpoint at $0.906, which is the first important level to book profits. However, clearing this hurdle could propel Polygon to the range high at $1.05, coinciding with a higher time frame resistance.
This MATIC price move would constitute a 40% rally in total, but investors can book profits at the midpoint.
MATIC/USDT 1-day chart
On the other hand, if MATIC price gets rejected at the range low at $0.758, it will indicate weak buyers and could ruin the setup. In such a case, if Polygon flips the $0.729 barrier into a resistance level, it will invalidate the bullish thesis and handover the control to bears.
This development could knock MATIC price down to the $0.647 support level, where buyers could regroup and give the recovery rally another go.
Note:
The video attached below talks about Bitcoin price and its potential outlook, which could influence MATIC price.
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