• MATIC price returns to the boundaries inside the rising wedge.
  • Final support zone ahead to dictate the direction of the next trend.
  • Seasonality creates conditions for significant volatility.

MATIC price hinted that a significant rejection of the rising wedge might be developing. As a result, MATIC was handily outperforming the broader market but could not maintain those gains and instead returned inside the rising wedge.

MATIC price falls back into the wedge and threatens to sink even further

MATIC price action has been a huge source of frustration for bears and bulls alike. A rising wedge is one of the most bearish patterns in existence, with an extremely high positive expectancy rate of converting into a profitable short pattern. But when price action moves above the pattern, it creates a massive bear trap and generates substantial higher movements.

Bears have been tricked, and bulls have been tricked. Traders wonder if this behavior will continue or if MATIC will finally have a clear breakout. From an Ichimoku perspective, MATIC price has a more difficult time moving lower than it does moving higher.

The Cloud represents the final level of support for MATIC price with Senkou Span A at $1.73 and Senkou Span B at $1.63. Both of which are below the lower trendline of the rising wedge. If MATIC has a daily close below the Cloud, that will also complete an Ideal Bearish Ichimoku Breakout. Coupled with the fall below the rising wedge, a total collapse of MATIC price down to $1 is likely.

MATIC/USDT Daily Ichimoku Chart

However, despite the return inside the rising wedge, MATIC price remains bullish in the Ichimoku system. Price remains above the Cloud, and the Chikou Span remains above the candlesticks. Therefore, for MATIC to deny short-sellers any additional strength, bulls will need to push MATIC to a close above the daily Tenkan-Sen and Kijun-Sen – above $2.15.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana network is plagued by failed transactions caused by congestion issues on the blockchain. The recent rise in popularity of Solana-based meme coins has resulted in a massive increase in user activity on the SOL blockchain, which has exacerbated the issue. 

More Solana News

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Pups, a BTC-based meme coin, hit a new all-time high of $84.08 early on Friday. The Ordinals Inscription project, which was launched nearly a year ago, sees gains from anticipation surrounding Bitcoin halving.

More Bitcoin News

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

Ripple sees AMM back in action on the XRPLedger mainnet after amendment on Friday. XRP price tests $0.60 support, price ranges below $0.62 on April 12. Ripple CLO shared the Second Circuit Court of Appeals refusal to reconsider their decision, considered a loss for the SEC. 

More Ripple News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki, author of Rich Dad Poor Dad, is popular for his investment advice and pro-Bitcoin stance on social media platform X. Early on Friday, Kiyosaki shared his thoughts on Bitcoin ETFs and advocated holding the asset directly, instead of a “Wall Street” version. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. While Bitcoin’s long-term outlook remains positive, bouts of volatility could bring prices down ahead of the upcoming halving.

Read full analysis

BTC

ETH

XRP