- Polygon price action sees bulls knocking on the door of the lower end of a longer-term trend channel.
- The short-term resistance at $2.10 looks solid for now, but expect a breakthrough once a catalyst kicks in.
- MATIC could see a quick follow-through towards $2.40-ish once on re-entry in the trend channel.
Polygon (MATIC) price action drifted quite a bit lower when it broke out of its bullish trend channel on January 21. Since then, MATIC price action has been bouncing back and is now knocking on the lower barrier of the trend channel for the third day in a row. With more and more global tailwinds aiding cryptocurrencies, expect a breakthrough soon and re-entry back into the channel, with a solid follow-through towards $2.40 in the short term.
Bulls are eager to enter and are set to join the rally
Matic price action has used a base station as an entry point for bulls to engage in the leg up. The monthly pivot at $1.87 has seen a solid test and firm pushback from bulls against bears trying to break it and push price action further to the downside. Instead, it looks like bulls are taking over and are now squeezing bears against the ascending bottom trend line of the marked-up trend channel.
Expect bulls to keep pushing as the lows get higher while the highs keep pushing against the ascending trend line. The 55-day Simple Moving Average will be broken instantly as the mounting pressure to the upside ends up being too big a match for bears to withstand. A breakout above $2.10 will see the rally follow-through in a big ways and hit the monthly R1 resistance level around $2.43, probably in just a matter of a few trading sessions, returning 20% gains from where MATIC price action trades at the moment.
MATIC/USD daily chart
With three rejections on the docket already, the rejections on the trend line could be one too many for investors, and the bull run could start to lose pace as investors pull their funds and book profits. With that shift in sentiment expect a fade back to the monthly pivot at $1.87. With already two support tests, expect a possible break and a return to $1.75, erasing 19% of market value in MATIC.
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.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.