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MATIC price screams sell as bears target $1.15

  • Polygon price is unfolding a steep impulse wave down.
  • MATIC price has breached the consolidation trend line.
  • Invalidation for the bearish thesis is a touch at $1.67

Polygon price displays “calm before the storm” like behavior as price consolidates post-sell-off at $1.50.

Polygon price could self destruct

Polygon price is currently trading at $1.50 within a previous demand zone. Last week’s bullish thesis mentioned that MATIC price could find a bottom between the $1.55 and $1.65. The uptrend invalidation was set at $1.55. Now that the MATIC price has completely invalidated the extended target, the MATIC price hints that a larger selloff may be underway.

Polygon price has established two bearish impulse waves since the March rally. The 2nd wave is much deeper than the first wave and has breached the consolidative parallel channel. The trend channel breach is a common trait for wave three impulses which means MATIC price is only halfway towards its intended target. Traders should expect more sideways action to unfold before additional drops into $1.32 and possibly $1.15 occur. 

Matic 4/8/22

MATIC/USDT 6-Hour Chart

Invalidation of the bearish scenario will occur if the MATIC price can tap $1.62. If this countertrend scenario occurs, the $1.75 and $1.80 targets will be back on the table, resulting in up to a 22% increase from the current MATIC price.

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FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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