Why being an early buyer of Polygon’s Matic price is not advised
- Matic price shows bullish divergence on the 2-day chart.
- The volume pattern shows a significant difference in the last two declines.
- Invalidation of the current downtrend could be a breach above $0.72
MATIC price shows subtle signs that the downtrend could be coming to an end. Still, being an early buyer is not recommended.
MATIC price bulls need to retaliate
Polygon’s MATIC price trades on exchanges at $0.40 At the current time of writing. The bulls managed to produce a bullish engulfing candle with an increased spike in volume this week which could induce a rally towards $0.56. Still, the downtrend remains intact from a macro perspective.
MATIC price shows a divergence between the May 11th decline and the recent display of bearish fury during the 3rd week of June on the Relative Strength Index. The divergence accompanied by the overall decrease in volume warrants the idea that the downtrend is ending. However, being an early buyer is not advised because the bears could still trigger a decline to $0.25 after reaching the bullish targets mentioned above.
MATIC/USDT 2-Day Chart
The safest way to invalidate the bearish downtrend will be a breach above $0.72. If this occurs, a rally could ensue towards $0.80, followed by a three-wave pullback. Traders and investors could then partake in the next bull rally with confidence targeting the $.1.20 zone resulting in a 200% increase from the current MATIC price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
