MATIC price bound for a short-squeeze, targets $1.85
- MATIC price has been consolidating between $1.30 and $1.70 on the 4-hour chart.
- A tapering of the sell-off volume suggests that support was found at $1.42.
- A spike in buying pressure around the current price levels could push Polygon to $1.85.
MATIC price appears to display a potential bullish setup. A spike in volume could give short-term traders the confidence to send Polygon towards $1.85 or even $2.
MATIC shows ambitious price return
Short-term traders have been fading Polygon's price recovery for several weeks. On each sell-off, buying pressure has slightly increased while selling volume seems to be tapering off. If MATIC price can print a new 4-hour candlestick with increasing volume, it may lead to a 30% to 40% upswing.
Still, it is not recommended to be an earlier buyer in events like this. The safest way to trade this potential bullish setup is to place a buy stop at the level of $1.50 or allow MATIC price to break out and enter on a pullback. This one-to-one trade setup may entice many short-term traders in such a challenging market.
MATIC 4-Hour Chart
It is always best to consider an opposite scenario, especially when trading the intraday time frames. MATIC price printed a lower low on February 24 at $1.24, which could be early evidence that bears are still in control.
A break below $1.24 will invalidate this short-term bullish trade setup. MATIC price could then return to the $1.15 or even $1.05 to try to find support.
Author
FXStreet Team
FXStreet
