- MATIC price action moves counter to the broader cryptocurrency market and rallies.
- MATIC was positioned perfectly for a catalyst to rally it higher.
- A new all-time highest weekly close is on the horizon.
MATIC price action has been in a bullish tear, trading to the inverse of nearly every other cryptocurrency. Consequently, it was positioned perfectly for a rally and is now on track to create a new all-time highest weekly close.
MATIC price rallies during sell-off for these three following reasons
MATIC price had cleared a significant hurdle in its drive towards new all-time highs. The first reason for the recent rally is the breakout above $1.74. $1.74 is where the 61.8% Fibonacci Retracement and the final high volume node in the 2021 volume profile exist. A clear break and close above $1.75 means MATIC has an easier time moving up than it does moving down. The volume profile thins considerably above $2.00.
The second reason for the rally is the conversion from bear market levels in the RSI to bull market levels. MATIC price has traded in bear market conditions in the Relative Strength Index since mid-August. However, buyers have tested the final overbought level of 65 a total of six times since October 13th. With the breakout above 65 in the Relative Strength Index and a move to 70, the RSI shifts into bull market conditions.
The third and final reason for the rally is one that some traders might miss. The all-time high for MATIC price is $2.44, but the all-time highest close is $1.82. Therefore, it is very likely that buyers are positioning MATIC for a new all-time highest close on the weekly chart. This would be a significant event for MATIC and would likely create a launching pad for higher prices.
MATIC/USDT Daily Ichimoku Chart
However, caution should be practiced. MATIC price needs sustained buying pressure and bullish conviction to maintain these new multi-month highs. If buyers fail to support MATIC, the result will likely be a bull trap, and a flash crash towards the $0.80 level is likely.
Follow us on Telegram
Stay updated of all the news
Ripple holders' profit taking hits a 19-month high as XRP price shoots up by 42%
XRP price has performed beyond expectations and has marked a multi-month high, restoring confidence in its investors. These holders have also made the most of the situation and turned to sell, which could backfire on the price action soon.
Decentraland Price Forecast: What to expect from MANA as Metaverse Fashion Week kicks off
Decentraland price (MANA) has identified critical support on day one of the Metaverse Fashion Week. The token is trading horizontally on the four-hour timeframe as bulls push to break above a descending trendline.
Ethereum devs confirm withdrawals to begin on April 12; Here's what to expect from ETH price
Ethereum is on the verge of bringing about one of the biggest upgrades to the blockchain since the Merge. The arrival of withdrawals has been anticipated for a long time now, however, it may not be as lucrative for Ethereum price as one might expect.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Market woes threaten bullish potential, XRP is undeterred
Bitcoin has reclaimed above $27,000, but increasing market volatility threatens the leg up. Ethereum faces critical resistance at $1,819 as investor sentiment suggests liquidity issues. Ripple reaches multi-month highs amid lawsuit-related optimism.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.