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Here is what market makers have in store for MATIC price

  • MATIC price has set another equal high at $0.595 in its journey to collect liquidity above an existing equal high at $0.626.
  • This development could suggest that the momentum is waning, but has yet to see what market makers might do next.
  • A four-hour candlestick close below $0.477 will invalidate the bullish thesis. 

MATIC price has shown an incredible recovery run over the past three weeks. The bounce from the recent pullback suggests that bullish momentum is back. However, things could turn ugly with potential liquidity sweeps followed by a reversal.

MATIC price and testing its limits

MATIC price retraced 33% after its 100% upswing that was triggered on June 18. This pullback emerged after the altcoin formed three equal highs at roughly $0.626. The correction stabilized around the $0.477 support level as Polygon bulls moved above it.

So far, market makers or smart money has pushed MATIC price up by 43% in hopes of collecting the buy-stop liquidity resting above $0.626. However, this run-up seems to be facing a temporary resistance at $0.595, resulting in another equal high.

While market makers have a much bigger incentive to push MATIC price higher, a reversal after collecting liquidity might be in place. Moreover, the equal highs formed around $0.595 can be viewed as a double top formation that signals the end of an uptrend. 

Either way, the upside for MATIC price is capped around the $0.626 level. Only a four-hour candlestick close that flips this hurdle into a support level will allow the altcoin to retest the high-time-frame resistance barrier at $0.686.

MATIC/USDT 4-hour chart

MATIC/USDT 4-hour chart

On the other hand, if MATIC price produces a four-hour candlestick close below the $0.477support level, it will flip it into a resistance barrier and invalidate the bullish thesis. 

In such a case, MATIC price could crash 20% to revisit the weekly support level at $0.381.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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