- MATIC price steadying above the trough of a rising wedge pattern.
- 4-hour Relative Strength Index (RSI) near oversold reading.
- Volume profile does not reveal an eager desire to liquidate or cut holdings.
MATIC price decline since the April 29 high at $0.946 has taken a corrective form, and it is near completion, touching the trough of the rising wedge pattern at $0.675.
MATIC price potential yet to be realized
From March 14 to April 25, Polygon moved sideways in a wide range of 60%, with the weekly closes occurring between $0.360 and $0.385 for seven of the eight weeks. It was a rare formation, but the MATIC price contraction driven by speculator indecision on both sides formed the energy to carry the altcoin over 200% higher in eight days.
The drop below the wedge’s lower trend line on April 30 kickstarted the decline, taking MATIC price down 20% at today’s low, and right in line with the forecast first penned in an April 30 FXStreet article. Some residual selling pressure can be expected, and Polygon may briefly undercut the trough at $0.675 before the resumption of the advance.
MATIC price will encounter minor resistance at the 50 four-hour moving average at $0.772. Pertinent resistance will emerge at the 61.8% and 78.6% Fibonacci retracement levels at $0.838 and $0.884, respectively. Speculators can anticipate further resistance at the psychologically important $1.00.
If volume explodes as the end of April, MATIC price will conquer the all-time high at $0.946, giving it close to a $5 billion market capitalization. The potential exists for the rally to touch the 161.8% extension of the current correction at $1.153.
MATIC/USD 4-hour chart
A close below $0.675 on the 4-hour chart will shift the outlook to neutral and expose MATIC price to a test of $0.605, or even the March 11 high at $0.540. The wedge’s measured move target is $0.517.
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
Editors’ Picks
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.
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.
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.
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.
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.
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.