How to trade the upcoming 35% breakout in MATIC price
- MATIC price hints at a retracement to $0.600 after a 21% upswing.
- This bullish retracement will allow sidelined buyers to step in and trigger a 35% move to $0.809.
- A four-hour candlestick close below $0.564 will invalidate the bullish thesis for Polygon.
MATIC price reveals an interesting setup that will provide patient buyers with an opportunity to accumulate. This downswing will most likely be followed by a swift uptrend that propels Polygon to new highs.
MATIC price and the gameplan
MATIC price traded between the $0.600 and $0.751 from May 13 and stuck inside this range for nearly two weeks. However, on May 26, there was a breach of the lower limit, which eventually led to a sweep followed by a 21% upswing.
This move set a new range, extending from $0.564 to $0.683 and the exhaustion is likely to pull MATIC price lower to stable support levels. The 50% retracement level at $0.624 is one such level, but the stabilization will mostly occur at $0.600.
If sidelined buyers step in and overwhelm the bears, the chances of an upswing will improve quite a bit. In this scenario, investors can expect MATIC price to make a run at two significant hurdles at $0.751 and $0.809.
A retest of the $0.809 level would indicate a total gain of 35% from $0.600.
MATIC/USDT 4-hour chart
While things are looking up for MATIC price, a quick surge in selling pressure that pushes the altcoin below the range low at $0.564 will invalidate the bullish thesis.
Such a move would create a lower low and skew the odds in the bears’ favor. This development could also crash MATIC price to $0.456.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
