MATIC price forms rising wedge, threatening steep correction to $1
|- MATIC price returns to the boundaries inside the rising wedge.
- Final support zone ahead to dictate the direction of the next trend.
- Seasonality creates conditions for significant volatility.
MATIC price hinted that a significant rejection of the rising wedge might be developing. As a result, MATIC was handily outperforming the broader market but could not maintain those gains and instead returned inside the rising wedge.
MATIC price falls back into the wedge and threatens to sink even further
MATIC price action has been a huge source of frustration for bears and bulls alike. A rising wedge is one of the most bearish patterns in existence, with an extremely high positive expectancy rate of converting into a profitable short pattern. But when price action moves above the pattern, it creates a massive bear trap and generates substantial higher movements.
Bears have been tricked, and bulls have been tricked. Traders wonder if this behavior will continue or if MATIC will finally have a clear breakout. From an Ichimoku perspective, MATIC price has a more difficult time moving lower than it does moving higher.
The Cloud represents the final level of support for MATIC price with Senkou Span A at $1.73 and Senkou Span B at $1.63. Both of which are below the lower trendline of the rising wedge. If MATIC has a daily close below the Cloud, that will also complete an Ideal Bearish Ichimoku Breakout. Coupled with the fall below the rising wedge, a total collapse of MATIC price down to $1 is likely.
MATIC/USDT Daily Ichimoku Chart
However, despite the return inside the rising wedge, MATIC price remains bullish in the Ichimoku system. Price remains above the Cloud, and the Chikou Span remains above the candlesticks. Therefore, for MATIC to deny short-sellers any additional strength, bulls will need to push MATIC to a close above the daily Tenkan-Sen and Kijun-Sen – above $2.15.
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.