MATIC price at crossroads for the year as winter could turn up the heat in crypto

Polygon (MATIC) price action saw traders putting forward their bets for the fall and winter as price action rocketed 8%. A small fade this Monday morning is not that strange: China markets tanked massively, and the nearby vicinity of the monthly R1 resistance level is triggering some profit-taking. Two big important technical indicators are trading almost at the same price and could be seen crossing into a bullish sentiment outlook for the coming months.

MATIC price set for a bullish blitzkrieg of 33% gains

Polygon price action saw a massive wave of bullishness on Sunday as price action jumped over 8% for the day. That move hit $0.909 on Monday morning, which is very near the monthly R1 resistance level at $0.920. Today's fade is quite normal, seeing that Asian stock markets tanked over 6% and some China tech stocks declined even more than 10%, with big names like Alibaba and Tencent on the back foot after the China Party Congress. It is possible that a big position switch is happening as the 55-day Simple Moving Average (SMA) is set to cross the 200-day SMA.

MATIC price action will probably rally firmly over the coming weeks and months, following the  MA cross. This could be a reflection of the fact that the worst has been priced in now, and it is just a matter of buying into the market at what is likely to be the year's low. MATIC price action could see a pop above $0.96 this week, breaking above the high of July 20th, 2021. This opens room and prospects for a move beyond $1 to $1.20 at the high of July 4, 2021, which is near the monthly R3 resistance level.

 MATIC/USD Daily chart

Of course, there is still a risk price could fall and the 55-day SMA trade near to but not quite succeed in crossing above the 200-day SMA. That would probably result in bulls pulling their funds from Sunday to book small quick gains. In such a situation, price action would collapse and drop back to $0.62 as the green trend line would break to the downside.