• 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.

 

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

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect. The ongoing retracement hints at a 60% upswing to $3.50.

More Terra news

How trade SafeMoon price for a quick profit?

How trade SafeMoon price for a quick profit?

SafeMoon price gets ready for a quick run-up amid a bearish challenge. As a result, SAFEMOON has been consolidating below a crucial resistance barrier. Investors can expect the altcoin to resume its run-up soon.

More SafeMoon news

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price shows compression of two Simple Moving Averages as price consolidates. APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers. Invalidation of the bear trend remains at $6.15.

More ApeCoin news

Cardano Price Prediction: Can the release of Node 1.35 trigger a 40% rally

Cardano Price Prediction: Can the release of Node 1.35 trigger a 40% rally

Cardano price seems to be preparing for massive gains as Vasil hard fork takes one step closer to becoming a reality. In a recent Twitter thread, IOHK, the developers behind Cardano announced the launch of Cardano node 1.35.0 on June 25.

More Cardano news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP