Polygon's MATIC price signals hard times to come, here's why


  • MATIC price shows an increase in bearish volume.
  • Polygon price shows a classical shooting star pattern on the 3-Day chart.
  • Invalidation of the bearish decline is a breach above $0.60.

Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 lows.

MATIC Price shows early bulls are in trouble

Polygon's MATIC price could justify the old traders saying that "early buys quickly die" as the price threatens a breach into the mid $0.40 barrier. Since the middle of June, MATIC has been a crypto outperformer, rallying 100% in just one week. A Fibonacci retracement tool surrounding  the June 18 swing low at $0.31, into June 23 high at $0.63, shows the bears have already lost 38% of profits since the impressive rally.

Polygon's MATIC price currently trades at the psychological $0.50 barrier. The bears show an increase in volume on the 3-day chart, which confounds the idea that MATIC price will soon fall into lower Fib targets, presumably the 61.8% Fibonacci level at $0.48. If the bulls do not show up to support the lower fib levels, the potential for an uptrend will be in jeopardy and provide confidence for a sweep the lows event to occur, targeting $0.31.

A classical shooting star pattern is, at the current time of writing, just 2-hours from printing on the 3-day chart. Its confirmation would reaffirm the idea that MATIC price will experience hard times shortly.

tm/matic/6/29/22

MATIC/USDT 3-Day Chart

Still, having an invalidation point will be vital as early market conditions are known to be increasingly volatile near psychological levels. Invalidation of the downtrend will be a breach above $0.60. If the bulls can re-hurdle this price point, they should have enough to stream to rally towards $0.91, resulting in a 90% increase from the current MATIC price.

 


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