Is Matic price setting up a bear trap? Subtle cues hint at a $2.10 target

Matic price signals a desire for a countertrend rally.
Polygon price prints a bullish hammer candle on the weekly chart.
Invalidation of the bullish idea is a breach of $0.34.

Matic price could surprise the crypto market as the Polygon ecosystem could be prepping for a massive rebound to $2.10.

Matic price displays subtle bullish cues.

MATIC price could be the "sleeper" coin within the crypto market as the price action displays distinct differences from most other coins in the space. The weekly close has printed a bullish hammer candle with a bearish color. The anomaly presented by the weekly candlestick could suggest smart money involvement in the Polygon price.

MATIC price displays an increase in volume for the current bullish hammer. If the technicals are correct, the Matic price could be trying to establish a countertrend rally into the $2.10 zone as a b wave rally. On smaller time frames, traders should look for a bullish breach of a previous 4th wave degree to provide an appropriate entry signal while placing safety stops at this year's swing low, currently marked at $0.51. The swing low is subject to change if any market fakeouts occur.

MATIC/USDT 1-Week Chart

The safer invalidation for swing traders uninterested in intraday trading is a breach below the large bullish engulfing candle from May 2021 at $0.34. If the bears breach this level, consider the entire thesis void. The bears could continue heading south towards $0.20, resulting in a 75% decrease from the current MATIC price.

Share: Cryptos feed

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.

Join Telegram