- MATIC has hit a curb in the steep ascent of gains.
- Buyers took Polygon profits at $1.57, and it looks that the profit-taking is not over yet.
- Supporting factors are waiting for buyers to re-enter again.
Although Polygon (MATIC) made a new high yesterday for this summer, it does not tell a compelling story for the days to come. Price got rejected at $1.57 and is forming a double top with the high on June 17. Buyers got tempted to take some profit around this level, causing a short-term correction and making other buyers take the money and run. For now, the low of August 15 is holding as near-term support at $1.36, but it is just a matter of time before sellers take over.
MATIC needs to flush out short-term investors, wait for long-term investors to step in
Expect in the coming day some more profit-taking that could result in a correction of 12% to the downside. Looking for support, $1.25 looks good with the yellow ascending trend line originating from March 22 and already shown in the past its importance with multiple tests both to the upside and downside. Secondly, we have the green ascending trend line from July 20 that had three trials, confirming its importance.
A bit lower, the 55-daily Simple Moving Average (SMA) comes in at $1.07. That is still quite far away, but as another supporting power is there, expect short-sellers to buy and close their short positions around $1.25 as multiple support elements are ready to keep the trend pointed upwards.
MATIC/USD daily chart
Long-term buyers who missed the boat back in July will be keen to step in at the above-described level at $1.25. After the profit-taking has happened, Polygon should have a new rally that could push price action beyond $1.57, breaking the double top. In an ideal technical trade, that level should be tested, confirming holding for support and having MATIC push further upwards toward $2. Full completion of the trade would be hitting $2.40 as that was the May 26 high – which amounts to a 70% gain.
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
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).
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.
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.
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.
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.
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.