- 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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.