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MATIC price set to reconquer $1.30

  • MATIC price has breached the bearish target.
  • Polygon price sell-off is occurring under low volume.
  • Invalidation is a breach below $0.88

MATIC price displays reasons to believe in a countertrend rally upwards of 30%.

MATIC price to retrace

MATIC price displays 5 completed waves down since the sell-off that commenced in March. The wave structure should provide a brief countertrend rally even if the overall downtrend does extend. Retracement levels could be between $1.20 and $1.30, which would be 30% of the current price of $1.03.

MATIC price is currently undergoing a sell-off accompanied by low volume. The lack of volume provides further confluence that the seller’s hands may need a period to reposition themselves before applying more pressure. It was forecasted that the MATIC price would fall into the $1.00 zone since early April. After reaching the target, profit-taking could lead to a large countertrend rally. It is worth noting that this thesis is being written while analyzing the 4-day chart, thus a countertrend move could take several weeks before being actualized.

TM/MATIC/5/6/22

MATIC/USDT 4-Day Chart

Invalidation of the bullish thesis is a break below $0.88. If this were to occur, the Polygon price could continue its decline towards $0.60, resulting in a 40% dip from current MATIC price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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