- Polygon is performing a second test at $0.96, just inches away from the $1 barrier.
- MATIC price looks set to undergo another rejection as traders wake up with a headache after the euphoria of Wednesday.
- Expect a fade as the summer rally starts to slow down.
Polygon (MATIC) price is set to undergo another rejection at the $0.96 historic pivotal level identified on July 20th, 2021. With a possible rejection in the making, it could become clear that a breakout is not for now as investors start to rethink and second guess what the Fed will do after several officials came out warning markets that they are far from done hiking 75 bp and more. This could pour some cold water on the hot crypto rally thus far.
MATIC price set to drop back to $0.80
Polygon price looks to be in doubt where to go next after Wednesday’s euphoria, when investors jumped the gun on their buy-orders as they started to believe the drop in inflation numbers was the first of many more to come. Markets remained ignorant of the warnings of Fed officials in the aftermath, who said they didn’t have any plans to slow down policy tightening, and kept pumping up price action in equities and cryptocurrencies. As the dust settles today, the warnings of these Fed officials now looks to have taken over sentiment as equity markets are mixed during the European session, and Fed Futures are already creeping back up towards pricing in a 60 bp hike instead of 50 bp as they did on Wednesday, after the release.
MATIC price could put further pressure on $0.96 and is likely to get another rejection, as has been the case throughout July, where not one body of a daily candle was able to close or open above $0.96. Expect a fade towards $0.85, the low of last week and then a dip back to $0.80 at the monthly pivot. With the backbone of the green ascending trend line and the 55-day Simple Moving Average, for now, still, alongside it, bulls will be present to start buying into the price action.
MATIC/USD Daily chart
Upside potential, of course, could still be present if traders put aside the remarks of Fed officials given it is still forty days until the next Fed meeting and rate decision. So still plenty of days left to rally and would need to be confirmed with at least a daily close above $0.96 and preferably even above $1. From there, MATIC price could rally another 10% towards $1.10, where the 200-day SMA will be trading as a cap.
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.