- MATIC price has recovered above the $0.722 support level after a minor deviation below it.
- This move hints at the start of a recovery rally to the $0.906 and $1.050 levels.
- If Polygon flips the $0.729 barrier into a resistance level, it will invalidate the bullish thesis.
MATIC price swept a crucial support level on September 21 after the FOMC meeting, which caused sidelined buyers to step in. As a result, Polygon has recovered quickly above the said barrier and is currently looking to flip another hurdle.
MATIC price to climb higher
MATIC price deviated below the $0.758 to $1.050 range on September 18 and was hovering below it. As Bitcoin price took a nosedive on September 21, so did many altcoins, including Polygon.
As a result, the Layer 2 token swept the $0.722 support floor to collect the sell-stop liquidity. This move was followed by a spike in buying pressure coupled with Bitcoin price flipping bullish, leading to a 9% run-up.
Going forward, investors should pay close attention to MATIC price recovery above the range low at $0.758. A decisive flip of this level will indicate that the bulls are back and that the uptrend is about to begin.
In such a case, the uptrend will likely pause around the midpoint at $0.906, which is the first important level to book profits. However, clearing this hurdle could propel Polygon to the range high at $1.05, coinciding with a higher time frame resistance.
This MATIC price move would constitute a 40% rally in total, but investors can book profits at the midpoint.
MATIC/USDT 1-day chart
On the other hand, if MATIC price gets rejected at the range low at $0.758, it will indicate weak buyers and could ruin the setup. In such a case, if Polygon flips the $0.729 barrier into a resistance level, it will invalidate the bullish thesis and handover the control to bears.
This development could knock MATIC price down to the $0.647 support level, where buyers could regroup and give the recovery rally another go.
The video attached below talks about Bitcoin price and its potential outlook, which could influence MATIC price.
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