• MATIC price completes dive below the rising wedge.
  • Primary support holds MATIC inside a substantial value area.
  • Downside risks remain but are likely limited in scope and scale.

MATIC price suffered one of the fastest 50% retracements out of the major cryptocurrencies. Bears finally generated a sell-off from the rising wedge and pushed MATIC towards its most vital primary support zone. Buyers have stepped in, but it remains to be seen whether they will continue.

MATIC price likely to retest the $2.00 value area

MATIC price action has been dramatic over the past several weeks. Sellers were able to complete a 50% retracement on MATIC’s daily chart in just five days after breaking out below the rising wedge – the speed of which has not been matched by any other principal high market cap cryptocurrency. However, despite the selling pressure, bulls have returned and are positioning Polygon for another run higher.

The black vertical line on the weekly chart represents an upcoming Kumo Twist in the Ichimoku system. Kumo Twists often act as turning points for price action. If an instrument is trending at or near a Kumo Twist, important turns in the market can occur by creating new major/minor swing highs/lows. For example, the current corrective move for MATIC price culminates right next to the upcoming Kumo Twist, indicating a swing low has formed a new uptrend will begin.

MATIC/USDT Daily Ichimoku Kinko Hyo Chart

A support zone between $1.50 and $1.69, previously identified on January 18, was hit on January 22. Sellers pushed MATIC price below that support zone, but then buyers rallied back inside it, and there MATIC remains. A strong bounce or recovery rally is expected as the oscillator values are heavily oversold. MATIC is likely to test the Kijun-Sen at $2.00 as resistance before bears resume any selling pressure. Buyers should be aware that a small bump in the road to $2.00 could occur at the Tenkan-Sen near $1.88, but the rejection should be temporary.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP