MATIC sell-off denied by bulls, Polygon moves for another breakout above its rising wedge
|- MATIC price pulled the rug on any short-sellers below the lower trend line of the rising wedge and below the Ichimoku Cloud.
- Strong bounce back into the rising wedge and above the Tenkan-Sen points to yet another likely breakout above the rising wedge pattern.
- Back and forth price action within the overall wedge pattern is expected to continue.
MATIC price rallied nicely off some levels that weighed heavily to the downside. Bulls were mainly on the sidelines, and bears were actively shorting – for good reasons. The January 7 close below the rising wedge followed by the January 8 close below the Ichimoku Cloud would provide the basis for any trader to look at the short side of the market.
MATIC price traps short-sellers and makes another run towards a breakout above the rising wedge pattern
MATIC price is poised for significant expansion if it finally generates a sustained breakout above the rising wedge pattern. MATIC has been trading inside and slightly above this bearish reversal pattern since October 2021, with no clear breakouts but many fakeout moves. However, none of the fakeouts above the upper trendline have generated a sustained sell-off.
MATIC still has some room to confirm a breakout from a time cycle perspective. But bulls and bears should watch out for the week of January 28. On the weekly Ichimoku chart, that is the next Kumo Twist. Kumo Twists have a very high chance of creating major and minor highs/lows if an instrument is trending into the period of the Kumo Twist. So unless MATIC price performs a strong breakout before the period of the Kumo Twist, it could face some selling pressure during the final week of January 2022.
MATIC/USDT Weekly Ichimoku Chart
Ideally, MATIC would trade sideways or slightly lower until the Kumo Twist appears, giving MATIC price a minor swing low that would help establish a sustainable trend higher.
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