MATIC outperforms Bitcoin and Ethereum, Polygon targets $3 and new all-time highs

  • 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.


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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price prepares for 125% breakout to $0.000089

Shiba Inu (SHIB) has been downtrending within a pattern for almost the whole of November. After hitting the low of the month on Friday, with global markets in panic mode, investors could spot buy opportunities as concerns about the new Covid variant started to ease.

More Shiba Inu News

XRP price collects the liquidity it needs to surge towards $2

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple can rebound swiftly and move higher.

More Ripple News

Solana bulls return to the market wanting to push SOL price to new all-time highs

On Friday, Solana (SOL) price saw a 16% swing to the downside as markets got rattled by concerns over a new Covid variant. Investors, however, used the weekend to reassess the situation and quickly bought into SOL price action on Monday as bulls pushed price up to close above the monthly pivot at $185.

More Solana News

Sandbox outperforms with double-digit gains ahead of SAND's Alpha launch

Sandbox, a virtual blockchain network, is dominating the metaverse with its double-digit price gain. Sandbox is offering exclusive NFTs to community participants holding the Alpha Pass.

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!