MATIC price encounters selling pressure but Polygon remains on track to $2.5
|- Polygon price has been trading lower since the peak of October 29.
- MATIC price is getting squeezed against $1.75 while the daily highs are coming in lower.
- Expect a false break and bullish reversal, forecasting a bear trap.
Polygon (MATIC) price has been under pressure since the end of October after bulls failed to consolidate above the monthly R2 resistance level at $2.20. Since then, MATIC price has been on a downward trajectory, with lower highs and a squeeze against the monthly pivot at $1.78 and a few false tests on the pivotal historical level at $1.75. With the current sentiment in global markets in risk-on and tailwinds blowing from Bitcoin making new highs, expect a pickup in demand and a bullish breakout towards $2.48.
MATIC price bullish pop could hold 48% gains
Polygon price has seen its uptrend treading a bit of water as bulls cannot reclaim new highs. Instead, bears are slightly in control by squeezing MATIC price action to the downside, with evident respect to the red descending trend line. Bulls are unwilling to halt the squeeze for now, as the Relative Strength Index (RSI) has been too long and too far in overbought territory.
MATIC price can use this cooldown to attract fresh buying volume as the RSI is now firmly in neutral territory and nearing the double belt of $1.75-$1.78 of support, bulls will be there to step in and defend the uptrend. Even if the belt of support would break, the yellow ascending trend line can act as fail-safe support for the uptrend and trap bears with a quick reversal to the upside.
MATIC/USD daily chart
Expect thus MATIC price to dip and test the $1.75 barrier, which could break and see bears flocking in for further shorting. Still, the yellow ascending trend line should act as a fail-safe system and keep the uptrend in check, forming a perfect bear trap in the process. As bulls have been buying the dip, expect a swift reversal to the upside with $2.48 as first level insight.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.