Why Polygon’s MATIC inability to break above $1.00 is a canary in the coal mine


  • 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

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


Recommended Content

Editors’ Picks

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. 

More Ripple News
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.

More Dogecoin News
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.

More Hedera News
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.

More Ethereum News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP