- MATIC price pulled the rug on any short-sellers below the lower trend line of the rising wedge and below the Ichimoku Cloud.
- Strong bounce back into the rising wedge and above the Tenkan-Sen points to yet another likely breakout above the rising wedge pattern.
- Back and forth price action within the overall wedge pattern is expected to continue.
MATIC price rallied nicely off some levels that weighed heavily to the downside. Bulls were mainly on the sidelines, and bears were actively shorting – for good reasons. The January 7 close below the rising wedge followed by the January 8 close below the Ichimoku Cloud would provide the basis for any trader to look at the short side of the market.
MATIC price traps short-sellers and makes another run towards a breakout above the rising wedge pattern
MATIC price is poised for significant expansion if it finally generates a sustained breakout above the rising wedge pattern. MATIC has been trading inside and slightly above this bearish reversal pattern since October 2021, with no clear breakouts but many fakeout moves. However, none of the fakeouts above the upper trendline have generated a sustained sell-off.
MATIC still has some room to confirm a breakout from a time cycle perspective. But bulls and bears should watch out for the week of January 28. On the weekly Ichimoku chart, that is the next Kumo Twist. Kumo Twists have a very high chance of creating major and minor highs/lows if an instrument is trending into the period of the Kumo Twist. So unless MATIC price performs a strong breakout before the period of the Kumo Twist, it could face some selling pressure during the final week of January 2022.
MATIC/USDT Weekly Ichimoku Chart
Ideally, MATIC would trade sideways or slightly lower until the Kumo Twist appears, giving MATIC price a minor swing low that would help establish a sustainable trend higher.
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
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 Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
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.