Polygon price fluctuates in pennant rage, with bearish breakout on the horizon for MATIC
|
- Polygon price reveals pennant formation as it consolidates after a volatile fortnight.
- MATIC price sees limited upside with three big caps creating a hard ceiling.
- Traders should be alert to a break of technical support as this could trigger a drop back to $0.62.
Polygon (MATIC) price gets underpinned this Monday morning as markets find themselves rattled yet again at the start of the trading week. Effects are rippling as the UK chancellor, Kwasi Kwarteng, makes a U-turn on a sensitive element of his budget proposal after heavy criticism from both the US and even the IMF. With the pound sterling strengthening a bit, triggering some dollar weakness, cryptocurrencies are benefiting from the weakness in the dollar, triggering a few modest gains.
MATIC price forecasts some modest gains
Polygon price could print some small profits in the coming days after the market impact of some dollar weakness in volatile early trading. With the ASIA PAC closed, European markets whipsawed after comments and rumours that the UK chancellor and PM would backtrack on some of the measures in their mini-budget after massive pressure from their own cabinet, as well as the US and the IMF over the weekend. Although this is positive for now, expect to see that effect fade by next week, pushing markets back to the downside.
MATIC price thus sees limited upside, with the monthly pivot at $0.80 and a few cents above that, the 55-day Simple Moving Average (SMA) at $0.83. Another few cents higher, at $0.87 is the red descending trend line from the pennant, and additionally, above that, the 200-day SMA at $0.90, which could further act as cap to price action. Thus there are three, even four – if you take into account the monthly pivot – elements that could drag and possibly cut short any bullish price action for MATIC this week.
MATIC/USD Daily chart
Next week more downside is projected as some positive elements will start to fade. Not only from UK politics, but also from the war in Ukraine, where, with winter looming Ukraine forces could start to witness some setbacks,, and on top of that OPEC+’s expected decision to cut supply, resulting in oil prices shooting through the roof. Once the green trend line breaks as MATIC pushes to the downside, an initial floor potentially presents itself at $0.62 with the monthly S1 just above as first circuit breaker.
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.