• MATIC price has slipped below the 30-, 50-, and 100-day EMAs, denoting a short-term shift in the daily trend.
  • A pullback to $0.647 or $0.598 seems likely before an explosive rally to $1.048 and $1.328.
  • If Polygon produces a lower low below the July 13 swing low at $0.519, it will invalidate the bullish thesis.

MATIC price has been on a retracement trail for roughly a week and shows signs that this trend will continue. Patient investors will get a perfect opportunity to long Polygon after a retest of a stable support level. 

MATIC price needs to shed weight before explosive flight

MATIC price dropped roughly 28% between August 14 and August 20 after rallying nearly 234% in less than two months. This impressive run-up seems to be searching for a stable support level to bounce.

Interestingly the daily trend seems to have shifted in favor of bears after MATIC price sliced through the 30-day, 50-day and 100-day Exponential Moving Averages (EMAs). The most recent attempt to move beyond this level has failed, leading to a retracement.

As a result, investors can expect MATIC price to sweep the equal lows formed at $0.761. A quick recovery above the aforementioned level after a liquidity run is indicative of buying pressure, which will be the first signal market participants should  buy.

However, a flip of this barrier could result in a 15% drop to $0.647 and the subsequent support level at $0.598. This area is a perfect buying opportunity for the next leg that will most likely push through the hurdles discussed above and make a run for the $1.04 and $1.32 resistance barriers.

Such a move would constitute a 70% to 120% in gains and is likely where the short-term local top could form.

MATIC/USDT 1-day chart

MATIC/USDT 1-day chart

While things are looking up for MATIC price in the longer term, investors need to stomach the potential pullback to $0.647 or $0.598. However, if the sellers are persistent and produce a lower low below the July 13 swing low at $0.519, it will invalidate the bullish thesis. In such a case, MATIC price could revisit the $0.478 support level.

 


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


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

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.

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