Cryptosummer is about to get hotter with another 25% of profit in Polygon's MATIC


  • Polygon price set to perform bullish breakout.
  • MATIC is already up 80% since July and is set to make a 100% overall return.
  • Expect to see another rally reaching $1.20.

Polygon's MATIC price is getting a nice tan in the warm summer sun as price action is pumped and set to print solid returns nearing 100%, once a technical hurdle is broken to the upside. The positive turn in sentiment coincides with the overall recovery in global markets, where equities are not yet entirely into green figures for the yearly performance, but at least the situation is not as grim and dire as it was in June. Cryptocurrencies have been supported by this recovery and have seen investors returning after a long hiatus and hibernation, back for now and putting money to work.

MATIC price sees bulls impatient to break out

Polygon price is currently moving in a longer-term bullish triangle that got identified at the beginning of July and has seen respect along the way. With global markets on the front foot, more tailwinds are coming in for cryptocurrencies, making bulls impatient and wanting to break out of the triangle even before it's completed. With the base at $0.96, investors will be awaiting the breakout to enter around $1.00 and sit on their hands as bears get squeezed out.

MATIC price could quickly spiral higher and face three levels where profit taking will occur. The first level is the 200-day Simple Moving Average, at around $1.10, which is the biggest bearish hurdle to overcome in case bulls want to make more money. The second profit-taking level hangs around $1.15 and is August's monthly R1 resistance level. Last but not least is the historic pivotal level at $1.19 which already had a double rejection back on May 04 and 05 and will undoubtedly be a bridge too far as bulls will have taken profit on the mentioned levels.

MATIC/USD Daily chart

MATIC/USD Daily chart

A big fear amongst investors is that market sentiment could easily switch overnight as markets are focussing too much on the possibility that the Fed might start cutting rates in early 2023. With only a goldilocks scenario on their mind (rates are ‘just right’ for peaking inflation), investors might forget that inflation could still surprise to the upside and delay future easing. That would mean a rejection at $0.96 and a fall towards $0.80 at the monthly pivot before testing the green ascending trend line on support.



 


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery

Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery

Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin. 

More Ripple News

Bitcoin price falls amidst German government transfers, miners activity

Bitcoin price falls amidst German government transfers, miners activity

Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week. 

More Bitcoin News

Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds

Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds

Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday. 

More Cryptocurrencies News

Three reasons why altcoins could shake off losses this week

Three reasons why altcoins could shake off losses this week

On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment. 

More Altcoins News

Bitcoin: BTC price correction could end in July, according to seasonal data

Bitcoin: BTC price correction could end in July, according to seasonal data

Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.

Read full analysis

BTC

ETH

XRP