- Polygon price still ties up with gains from Monday trading.
- MATIC shows signs of issues underneath as indicators point to a cool-down need.
- Expect a fade soon toward support before ticking $1.20 to the upside.
Polygon (MATIC) price action has started to trade sideways as markets are starting to second-guess their idea of a Goldilocks scenario. After the dislocation has been ramping up between what central bank speakers were saying and how markets were trading the comments, that dislocation seems to have reached a boiling point. With the US and British central banks set to kick off the financial year on February 1st and 2nd, a few bulls are starting to second guess if they were not too eager too soon
Polygon price shows signs of second-guessing
Polygon price for a fourth day in a row cannot trade away from the monthly R2 resistance level near $1.02. As such, the sideways pattern is welcomed as the speed of the rally was going too hard for some bulls, and a cool-down is needed. Every market guru will tell you that trading is a marathon, not a sprint, thus the signs need to be respected or severe casualties are set to happen if this rally continues at this pace.
Luckily, MATIC can trade back below the overbought barrier on the Relative Strength Index but is not seeing signs of a cool-down either. The risk is that bulls are starting to second-guess whether it was wise to jump into this rally and defy the central banks set to come out with prospects and new information at the start of February. Expect to see some risk being limited, with selling positions and support at $0.96 to hold support before price action can rally higher toward $1.20 and print 23% gains in the next leg of this recovery rally near March.
MATIC/USD daily chart
In case that fade breaks below the support of $0.96, the risk is that bears flock into that break and run price action into the ground. For now, bears have been sidelined, but if the US Fed comes with a surprise or the BoE confirms a recession on its hands, expect a shock to go through the markets as that earlier mentioned dislocation needs to be unwound. Polygon price would tank back below $1 and find double support of the 55-day Simple Moving Average and the 200-day SMA near $0.86.
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
XRP eyes $0.6640 as Ripple CEO tips Trump to fire Gensler on first day in office
Ripple's XRP is up over 5% on Wednesday and could extend its rally to $0.6640 as the Securities & Exchange Commission may not file its appeal brief against the company due to Donald Trump's presidential election victory.
What's next for Bitcoin and Crypto industry following Trump's victory in US Presidential election
The 2024 US presidential election ended with pro-crypto advocates leading the House of Representatives, the Senate, and Donald Trump as the president-elect. The results stirred massive celebration across the crypto industry, with Bitcoin and the crypto market rallying following Trump's win.
Crypto Today: All Bitcoin holders in profit, TRON partners with Chainlink, DOGE miners in $145M buying spree
Bitcoin price reached a new all-time high of $75,120 on November 6 as markets reacted to Donald Trump’s victory in the 2024 US presidential election. The global cryptocurrency sector valuation grew by $190 billion within the daily time frame as bullish momentum spilled over into the altcoin market.
Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory
Paul Grewal, Coinbase's Chief Legal Officer, has asked the US Securities & Exchange Commission to reconsider how it regulates cryptocurrencies now that Donald Trump has been elected to a second term as president.
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.