• 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.


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 Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Binance Coin: This level stands between BNB price and $450

Binance Coin: This level stands between BNB price and $450

Binance Coin price faces a decision as it knocks on the doors of significantly stacked resistance barriers. Clearing these blockades is the only way BNB can trigger a swift run-up to important levels.

More Binance Coin News

Why MATIC price is setting the scene for a blowout

Why MATIC price is setting the scene for a blowout

Polygon (MATIC) price has had difficulty finding a supportive floor for bulls to get a foot in the door and price action moving higher. Now, however, a floor looks to have been identified at $0.62, with price action consolidating just above. 

More Polygon News

The last time this happened Shiba Inu price exploded

The last time this happened Shiba Inu price exploded

Shiba Inu price is stuck trading inside a range for nearly two weeks and shows signs of exploding soon. Interested investors can ride this wave, which is likely going to be volatile and quick.

More Shiba Inu News

Why renowned technical analysts believe Bitcoin price has bottomed out

Why renowned technical analysts believe Bitcoin price has bottomed out

Bitcoin price has been dominated by bearish sentiment recently, but the BTC trend might be nearing a turnaround. Several leading analysts in the crypto community are arguing that Bitcoin price action has developed in a more irregular manner over the years and diminishing “cycles” imply Bitcoin has bottomed out. 

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis