- Polygon price action has been on the ascent since the correction on September 7.
- Bulls are struggling to overcome a trend line that should be helping them.
- Pop to the upside should favor the bulls and contain 12% gains if the monthly pivot can hold.
Polygon (MATIC) is recovering after losing 37% of its value on September 7. Since then, Matic was able to recover about two-thirds of that. But there is an obstacle in the way that in the past helped buyers as a supportive element. Buyers look bleak in their attempts to push MATIC above the yellow ascending trend line. A break higher should open up another 12% gain in price action for Polygon.
Polygon price need to pick up the pace
Polygon is a bit stuck for its next move as the ascending triangle is in their favor. Buyers have had a difficult time in making recovery work for Polygon. It was only since Thursday that MATIC had a daily close above the monthly pivot at $1.34. This pivot now should act as support and attract buyers to defend this level from a dip below. In the meantime, adding a new volume to the trade could do the trick of pushing MATIC above the orange ascending trend line originating from March 22. Granted that the trend line has been chopped up a bit in the past sessions, but the bodies of the candles are struggling to get above that trend line.
MATIC/USD daily chart
Once price action in Polygon can go and stay above the orange ascending trend line, expect a further run higher toward $1.57. If buyers can refrain from booking too much profit, there might even be another leg higher to $1.75. Then MATIC will have had a complete recovery, and the correction from September 7 erased and made good.
On the other hand, sellers will jump on the occasion to push price action downwards with the struggle buyers have to break the ascending orange trend line. Sellers will try to defend and will go for the rejection in price action. A break of the green ascending trend line can make price action drop again toward low levels near $1, which would bring MATIC back to the lows of September 7.
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.