How to trade the upcoming 35% breakout in MATIC price

MATIC price reveals an interesting setup that will provide patient buyers with an opportunity to accumulate. This downswing will most likely be followed by a swift uptrend that propels Polygon to new highs. 

MATIC price and the gameplan

MATIC price traded between the $0.600 and $0.751 from May 13 and stuck inside this range for nearly two weeks. However, on May 26, there was a breach of the lower limit, which eventually led to a sweep followed by a 21% upswing.

This move set a new range, extending from $0.564 to $0.683 and the exhaustion is likely to pull MATIC price lower to stable support levels. The 50% retracement level at $0.624 is one such level, but the stabilization will mostly occur at $0.600.

If sidelined buyers step in and overwhelm the bears, the chances of an upswing will improve quite a bit. In this scenario, investors can expect MATIC price to make a run at two significant hurdles at $0.751 and $0.809.

A retest of the $0.809 level would indicate a total gain of 35% from $0.600.

MATIC/USDT 4-hour chart

While things are looking up for MATIC price, a quick surge in selling pressure that pushes the altcoin below the range low at $0.564 will invalidate the bullish thesis.

Such a move would create a lower low and skew the odds in the bears’ favor. This development could also crash MATIC price to $0.456.