Here’s why MATIC price is due for a 20% rally

MATIC price has collected liquidity below March 15 swing lows, suggesting a potential end of the downswing.
Investors can expect a base to form between $1.24 and $1.33 before a 20% ascent to $1.69.
A six-hour candlestick close below $1.24 will invalidate the bullish thesis for Polygon.

MATIC price is in a spot where an upswing possibility makes sense from a technical standpoint. The on-chain metrics also point out that a short-term uptrend seems likely in the coming days for Polygon.

MATIC price needs to pick a side

MATIC price rallied 36% from $1.24 between February 24 and March 2 to set a swing high at $1.69. This rally defined a range that Polygon has been traversing since March 2 and is likely going to do the same for the foreseeable future.

After a brief deviation above the range high in late March and early April, MATIC price has crashed roughly 23% to sweep below the equal lows formed on March 15. This liquidity grab movement indicates that a further downswing is unlikely.

Therefore, investors can expect MATIC price to consolidate between the recently formed support at $1.32 and the range’s midpoint at $1.47. However, in some cases, the downswing could extend, causing Polygon to coil up between $1.32 and the range low at $1.24.

Either way, a breakout from this consolidation is likely to propel MATIC price to retest the range high at $1.69.

MATIC/USDT 1-day chart

Supporting this upward move for MATIC price is the 30-day Market Value to Realized Value (MVRV) This on-chain metric is used to determine the average profit/loss of investors that purchased MATIC over the past year or month.

Based on the six-month history, local bottoms are formed at around -15%. Considering that the MVRV has already tagged this level a reversal is likely to occur.

MATIC 30-day MVRV

On the other hand, if MATIC price produces a six-hour candlestick close below $1.24, it will invalidate the bullish thesis by producing a lower low. In such a case, Polygon could slide lower to find a stable support level.

Share: Cryptos feed

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