- As Ethereum price drops below $3,000, whales diversify to altcoins like MATIC in their portfolio.
- MATIC launched its staking program on Bitfinex, offering 90 million tokens to its staking program.
- Analysts believe that MATIC has executed a classic bull trap, posting massive corrections after minor recovery.
Ethereum whales are adding altcoins to diversify their portfolio. Analysts are bullish on MATIC price recovery and predict a trend reversal in the altcoin.
Analysts believe MATIC price trend presents bull trap for traders
The cryptocurrency market suffered a bloodbath today. MATIC price posted 13% losses overnight. The altcoin launched its staking program on Bitfinex, offering the exchange 90 million tokens. Proponents expected a bullish impact on MATIC price after the launch of the staking program.
MATIC network has integrated the proof-of-stake mainnet with FTX. Users can now deposit and withdraw the altcoin on either chain. Therefore, the Polygon network hit two significant milestones with the launch of staking on FTX.
@Trader_XO, a pseudonymous cryptocurrency analyst evaluated the MATIC price trend and predicted a spike in the altcoin’s price. The analyst believes that there is only one direction for the altcoin’s price, and that is upward.
@BitQueenBR, a crypto analyst and trader, believes that MATIC price is approaching a trendline that has been respected since 2021. The analyst believes that breaking down the trendline could fuel a bullish narrative; however, if MATIC price breaks previous higher low, the downtrend could continue.
$MATIC approaching trendline that has been respected since summer 2021. PA breaking down the trendline = im not touching. Pricebreaking previous higher low = considering shorts. pic.twitter.com/MpdcbkFtEF— BitQueenBR (@BitQueenBR) January 18, 2022
Analysts argue that MATIC price has set a bull trap for traders and expects recovery from altcoin’s price.
FXStreet analysts believe that MATIC price could fall below critical support. This could drive the altcoin to $1.7, continuing the downtrend.
MATIC Price Prediction: Polygon prepares for an additional 17% drop
MATIC price has sliced below the neckline of the head-and-shoulders chart pattern at $1.970 on the 12-hour chart on January 21, putting a bearish target of $1.245 on the radar. The increase in selling pressure forced Polygon to cower below the critical support line which acted also as the neckline of the prevailing chart pattern at $1.970, coinciding with the 200 twelve-hour Simple Moving Average (SMA). This move had a huge impact on MATIC price, as the token has since lost 24% of its value. While MATIC price continues to lose its strength, Polygon could continue sliding lower toward the first line of defense at the September 18 high at $1.440. An additional foothold may emerge at the October 2 high at $1.352 before Polygon drops toward the pessimistic target at $1.245, which coincides with the September 23 high. Lower levels are not expected to be targeted, but if a surge in sell orders occurs, Polygon may fall toward the 127.2% Fibonacci extension level at $0.978 before rebounding.Read more
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