• MATIC price action has been a clear leader, outperforming the broader cryptocurrency market.
  • Massive, bullish signal forms after MATIC clearly rejects one of the most bearish chart patterns in technical analysis.
  • Bulls target the critical $3 level next, with the $5.50 range after that.

MATIC price has surged by more than 57% in just ten trading days. Concerns about whether it could make another breakout attempt of the upper trendline of a rising wedge have been handily dispelled. However, a pullback in the interim is expected.

MATIC price to cool-off and assess its recent moves, pullback incoming

MATIC price has two scenarios coming up that traders should be prepared for. The first is a pullback to the $2.40 value area. $2.40 is where the top of the current rising wedge pattern and daily Tenkan-Sen reside. A pullback to this level is a move that both long-term investors and short-term speculators should want to occur.

A retest of $2.40 that holds as support would confirm that the current breakout was legitimate. There have been five attempts since October 27 by MATIC bulls to breakout above the rising wedge, but all have failed and resulted in a return inside the rising wedge pattern.

Another reason a pullback is increasingly probable is the gap between the bodies of the daily candlesticks and the Tenkan-Sen (blue moving average). Gaps between the Tenkan-Sen and the bodies of candlesticks do not last long and often correct no later than four to six periods after the first gap. MATIC price is within that range for the pullback to occur.

The second scenario that traders should look out for is a consolidation phase. The consolidation phase would be a temporary pause where MATIC would likely trade between the $2.60 and $2.75 value areas. That consolidation would last until the Tenkan-Sen and Kijun-Sen cross above the rising wedge's upper trendline – roughly two weeks from December 24.

The $3 price level is the next central zone for MATIC price to test. $3 is a solid psychological level and near the 100% Fibonacci expansion at $2.93. Above that, a massive breakout towards the 161.8% Fibonacci retracement is next.

MATIC/USDT Daily Ichimoku Chart

For this bullish outlook to be invalidated, bears would need to push MATIC price to a daily close below the rising wedge and the Ichimoku Cloud at $1.65 or lower.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Bitcoin price action has spiked 5% over the last 24 hours, hinting at the start of an optimistic scenario. Previous publications have already explored why BTC is ready for a bear market rally from both short-term and long-term outlooks.

More Bitcoin news

FTX Latest: Former CEO Sam Bankman-Fried explains reopening withdrawals of Bahamian arm

FTX Latest: Former CEO Sam Bankman-Fried explains reopening withdrawals of Bahamian arm

FTX Digital Markets filed for bankruptcy on November 16; however, withdrawals for some will be resumed temporarily. Former FTX head Sam Bankman-Fried attempted to inform Bahamian regulators beforehand but to no avail.

More Cryptocurrencies news

Arguing the case for a Cardano price pullback to $0.35

Arguing the case for a Cardano price pullback to $0.35

Cardano price has produced four lower highs throughout the month, with three connected by a recently breached trendline. A hurdle above $0.322 could create an additional 12% upswing. A four-hour candlestick close below the $0.304 level would invalidate the bullish potential.

More Cardano news

Luna Classic Price Prediction: 10% drop then a market reversal

Luna Classic Price Prediction: 10% drop then a market reversal

Terra's Luna Classic price has been trading range bound for over a week. The consolidating range has produced higher highs and higher lows following each change of trend. A breach of $0.0001690 would invalidate the bearish triangle thesis.

More Luna Classic news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP