What’s next for Polygon’s MATIC price after rallying 90%
|- Polygon’s MATIC price has rallied 90% since the June 18 sell-off.
- MATIC price is rising impulsively with an uptick in volume.
- Invalidation of the bullish trend is a breach below $0.316 with contingencies (read below).
Polygon’s MATIC price could make a violent move higher. A bearish move from here will be quite surprising.
MATIC price could get volatile
Polygon’s MATIC price coils just below a triangular barrier that sent the digital asset into the low $0.30 zone during the third week of June. Since the low of $0.316, the bulls have managed to recover 90% of losses, trotting impulsively through the $0.30, $0.40, and $0.50 levels. On Monday, June 27, the MATIC price trades at $0.571 as a profit-taking consolidation ensues after the bulls briefly pierced the $0.60 cent barrier on the 8-hour chart.
MATIC price shows there could be a continuation of the uptrend to end the final week of June. The volume profile index signals an uptick in volume with a tapered effect as the current profit-taking consolidation pattern unfolds. Additionally, the Relative Strength Index has breached oversold territories, justifying the shallow pullback while providing bears a fair chance to close their orders and join the bulls. If the technicals are genuine, a second breach through $0.61 could trigger a bullish spike towards $1 in the coming days.
MATIC/USDT 8-Hour Chart
Ultimately, denial could be the catalyst to provoke an additional rally. If shorts are not removed in a timely fashion, a sharp spike through the triangle apex at $0.68 could ensue. An event that could force a highly problematic and volatile bullish environment for bears with less wiggle room to cover.
Invalidation of the bullish downtrend is a breach below $0.316 with one caveat. Traders looking to join the bullish bandwagon should wait for a breach above $0.61 to avoid being sucked into a time-consuming consolidation. It is imperative to remember that a hard stop should be placed below $0.31 as a retest of said price level could induce a seller's frenzy targeting the anticipated $0.20 level, resulting in a 65% decrease from the current MATIC price.
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