• Polygon price has been trading lower since the peak of October 29.
  • MATIC price is getting squeezed against $1.75 while the daily highs are coming in lower. 
  • Expect a false break and bullish reversal, forecasting a bear trap.

Polygon (MATIC) price has been under pressure since the end of October after bulls failed to consolidate above the monthly R2 resistance level at $2.20. Since then, MATIC price has been on a downward trajectory, with lower highs and a squeeze against the monthly pivot at $1.78 and a few false tests on the pivotal historical level at $1.75. With the current sentiment in global markets in risk-on and tailwinds blowing from Bitcoin making new highs, expect a pickup in demand and a bullish breakout towards $2.48.

MATIC price bullish pop could hold 48% gains

Polygon price has seen its uptrend treading a bit of water as bulls cannot reclaim new highs. Instead, bears are slightly in control by squeezing MATIC price action to the downside, with evident respect to the red descending trend line. Bulls are unwilling to halt the squeeze for now, as the Relative Strength Index (RSI) has been too long and too far in overbought territory.

MATIC price can use this cooldown to attract fresh buying volume as the RSI is now firmly in neutral territory and nearing the double belt of $1.75-$1.78 of support, bulls will be there to step in and defend the uptrend. Even if the belt of support would break, the yellow ascending trend line can act as fail-safe support for the uptrend and trap bears with a quick reversal to the upside. 

MATIC/USD daily chart

MATIC/USD daily chart

Expect thus MATIC price to dip and test the $1.75 barrier, which could break and see bears flocking in for further shorting. Still, the yellow ascending trend line should act as a fail-safe system and keep the uptrend in check, forming a perfect bear trap in the process. As bulls have been buying the dip, expect a swift reversal to the upside with $2.48 as first level insight.



 


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

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