MATIC price forms rising wedge, threatening steep correction to $1

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.