- Matic price saw a correction to 61.8% Fibonacci retracement level at $0.37 after its 93% bull rally.
- A 25% upswing is on the horizon as MATIC bounces off this a confluence of support.
- A bearish scenario will come into the picture if the 0.37 level is breached.
MATIC price has pulled back after surging nearly 100% recently. Now, the altcoin's correction could be coming to an end as it sees a massive 11% surge indicating a resurgence of buyers.
MATIC price correction rebounds
MATIC price saw a 30% correction to the 61.8% Fibonacci retracement level at $0.37 from its recent all-time high at $0.54. This support level is a confluence of the Momentum Reversal Indicator (MRI) breakout line and the SuperTrend indicator's recent buy signal.
Due to this demand barrier's nature, MATIC price saw an 11% surge in a single 4-hour candlestick, hinting at the buyers' aggressive bid orders. If this buying pressure persists, then Polygon could surge another 25% to retest its recent all-time high at $0.54.
Adding credence to this upswing is MRI's trend reversal signal presented in the form of green one candlestick on the 4-hour chart. This setup forecasts a u-turn in the pullback and suggests the start of a new uptrend.
MATIC/USDT 4-hour chart
According to IntoTheBlock's In/Out of the Money Around Price (IOMAP) model, 1,800 addresses have previously purchased nearly 147 million MATIC tokens at $0.40. Hence, the buying pressure as Polygon bounces off the $0.37 level will compound leading to an aggressive upswing.
MATIC IOMAP chart
However, the forecasted bull rally for MATIC price will not be smooth, especially considering the cluster of underwater investors ahead. IOMAP cohorts reveal $0.44 will be a tough nut to crack as 1,650 addresses that purchased 111 million MATIC tokens are "Out of the Money." Therefore, these investors will absorb the incoming bullish momentum by breaking even.
So, MATIC price could be in trouble if the support barrier at $0.37 is breached. In such a case, the investors present above this level will also add to the selling pressure pushing MATIC down 15% towards the 50% Fibonacci retracement level at $0.32
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.
Recommended Content
Editors’ Picks
Top 3 meme coins price prediction Dogecoin, Shiba Inu, Bonk: Memes face steeper correction than Bitcoin
Dogecoin eyes February lows after nearly 23% decline in the past seven days. Shiba Inu could plummet another 13% amid the broader crypto market correction. Bonk price is likely to regain lost ground as technical indicators point at recovery.
XRP sustains above $0.50 as traders digest news of Ripple XRP Ledger entry in the Japanese market
Ripple (XRP) sustained above $0.50, a key support level, on Wednesday. XRP price is down nearly 6% in the past ten days. The altcoin is in a confirmed downward trend, and wiped out all gains since February.
Optimism OP struggles to gain momentum despite alleged $90 million OP purchase by a16z
Venture capital firm a16z has purchased $90 million in OP tokens under a two-year vesting period, Unchained crypto reports. Sources told Unchained Crypto that Optimism has done well and the project is still doing airdrops.
Sei price action forecasts an opportunity to accumulate SEI Premium
Sei (SEI) price is at a crossroads and could trigger a steep correction or potential bounce after setting up an all-time high (ATH) of $1.145 roughly a month ago. Based on the Bitcoin price action, a potential bounce will likely occur anytime now.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.