• 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

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

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