- Polygon price ties up with gains after the doubtful start on Tuesday.
- MATIC recovers after a sharp decline of 7% on Monday.
- Traders are looking for clues from Jerome Powell on Wednesday.
Polygon (MATIC) price has received a firm rejection on the top side at $1.18, which triggered a massive wave of profit-taking as traders wanted to cash in on profits, not taking the risk of staying in the trade. With several central banks coming out this week, including the most important Federal Reserve interest rate decision on Wednesday at 19 GMT, violent swings look granted. Trying to create order in the chaos, only one message will be important for cryptocurrencies: the message from Fed chair Jerome Powell.
Polygon price sees traders on full alert for Powell’s words
Polygon price received a short but harsh rejection on Monday, which can be labelled profit-taking as a bunch of traders decided not to sit on the risk. Meanwhile, a new bunch of traders is eager to get in and try to play a pre-position trade in the idea that markets are selling the rumour and a dovish central bank will offer a buy-the-fact moment, with MATIC rallying higher. Markets will be hanging on Jerome Powell’s lips.
MATIC is set to jump higher in case Powell confirms the Fed hikes 25 basis points and possibly another 25 basis points after that and be done with it. Everything more dovish than that will be even more bullish for cryptocurrencies. A breakout trade looks to result in a break above $1.18 and open a new area for Polygon price to rally in the coming weeks, with $1.57 as the next profit target by the end of February.
MATIC/USD daily chart
As mentioned above, with already a few scenarios, a more hawkish scenario could be Jerome Powell delivering a 25 basis point hike with a very harsh hawkish comment or even a 50 basis point hike. That would mean markets have been blindsided and completely ignored the warning signs of the Federal Reserve being still hawkish, which would trigger a repricing of a risk premium. In that case, expect MATIC to tank towards $0.96 with even overshooting towards $0.90 towards the 55-day and the 200-day Simple Moving Averages.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
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.