• MATIC price action moves counter to the broader cryptocurrency market and rallies.
  • MATIC was positioned perfectly for a catalyst to rally it higher.
  • A new all-time highest weekly close is on the horizon.

MATIC price action has been in a bullish tear, trading to the inverse of nearly every other cryptocurrency. Consequently, it was positioned perfectly for a rally and is now on track to create a new all-time highest weekly close.

MATIC price rallies during sell-off for these three following reasons

MATIC price had cleared a significant hurdle in its drive towards new all-time highs. The first reason for the recent rally is the breakout above $1.74. $1.74 is where the 61.8% Fibonacci Retracement and the final high volume node in the 2021 volume profile exist. A clear break and close above $1.75 means MATIC has an easier time moving up than it does moving down. The volume profile thins considerably above $2.00.

The second reason for the rally is the conversion from bear market levels in the RSI to bull market levels. MATIC price has traded in bear market conditions in the Relative Strength Index since mid-August. However, buyers have tested the final overbought level of 65 a total of six times since October 13th. With the breakout above 65 in the Relative Strength Index and a move to 70, the RSI shifts into bull market conditions.

The third and final reason for the rally is one that some traders might miss. The all-time high for MATIC price is $2.44, but the all-time highest close is $1.82. Therefore, it is very likely that buyers are positioning MATIC for a new all-time highest close on the weekly chart. This would be a significant event for MATIC and would likely create a launching pad for higher prices.

MATIC/USDT Daily Ichimoku Chart

However, caution should be practiced. MATIC price needs sustained buying pressure and bullish conviction to maintain these new multi-month highs. If buyers fail to support MATIC, the result will likely be a bull trap, and a flash crash towards the $0.80 level is likely.

 


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 ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum 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