- MATIC price action has been a clear leader, outperforming the broader cryptocurrency market.
- Massive, bullish signal forms after MATIC clearly rejects one of the most bearish chart patterns in technical analysis.
- Bulls target the critical $3 level next, with the $5.50 range after that.
MATIC price has surged by more than 57% in just ten trading days. Concerns about whether it could make another breakout attempt of the upper trendline of a rising wedge have been handily dispelled. However, a pullback in the interim is expected.
MATIC price to cool-off and assess its recent moves, pullback incoming
MATIC price has two scenarios coming up that traders should be prepared for. The first is a pullback to the $2.40 value area. $2.40 is where the top of the current rising wedge pattern and daily Tenkan-Sen reside. A pullback to this level is a move that both long-term investors and short-term speculators should want to occur.
A retest of $2.40 that holds as support would confirm that the current breakout was legitimate. There have been five attempts since October 27 by MATIC bulls to breakout above the rising wedge, but all have failed and resulted in a return inside the rising wedge pattern.
Another reason a pullback is increasingly probable is the gap between the bodies of the daily candlesticks and the Tenkan-Sen (blue moving average). Gaps between the Tenkan-Sen and the bodies of candlesticks do not last long and often correct no later than four to six periods after the first gap. MATIC price is within that range for the pullback to occur.
The second scenario that traders should look out for is a consolidation phase. The consolidation phase would be a temporary pause where MATIC would likely trade between the $2.60 and $2.75 value areas. That consolidation would last until the Tenkan-Sen and Kijun-Sen cross above the rising wedge's upper trendline – roughly two weeks from December 24.
The $3 price level is the next central zone for MATIC price to test. $3 is a solid psychological level and near the 100% Fibonacci expansion at $2.93. Above that, a massive breakout towards the 161.8% Fibonacci retracement is next.
MATIC/USDT Daily Ichimoku Chart
For this bullish outlook to be invalidated, bears would need to push MATIC price to a daily close below the rising wedge and the Ichimoku Cloud at $1.65 or lower.
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
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.