|

MATIC price set to slip lower as bearish environment dominates

  • MATIC price action refrains from making new lows as bulls keep believing in the potential uptrend.
  • Polygon trades in a global environment with two main bearish events setting the tone, adding pressure to the technical bearish outlook.
  • Expect to see a mild risk-on tone with MATIC booking some gains before going into the weekend.

Polygon (MATIC) price has investors licking their wounds after an eventful trading week with bulls jumping in the relief rally on Wednesday and getting squeezed out on Thursday, and yet again tilted to the upside today. Expect to see moderate bets from investors going long as more peace talks are scheduled and another eventful weekend is set to take place with cryptocurrencies the only tradable asset. Investors are trying to assess the longer-term situation with stagflation in Europe and peace still nowhere in sight for Ukraine. Expect to see downward pressure whilst at the same time leaving a small window of opportunity for MATIC to print some gains.

Polygon price offers bulls a small window of opportunity

MATIC price action was on the cusp of ticking $1.600 earlier this week, but bears quickly showed their force again as the European Central Bank came out with many ifs and buts on when the central bank will do its first rate hike. The message from Lagarde was clear that although inflation and stagflation are set to kick in, the ECB can not act at the moment as it needs to support the economy to deal with the refugee crisis and the energy price crunch that Europe is undergoing at the moment. With that, bears are still holding the upper hand as the two main bearish factors in markets have not been solved, and thus bulls will have to settle for small windows of opportunity and short-term trades.

MATIC price action is a perfect reflection of that this week, with bulls trying to buy the dips but needing to book profits quite quickly as a complete paring back can happen at any moment. Expect to see a similar pattern today with some upward potential towards $1.50, maybe even a brief test at $1.542, which is the high of this week. As the weekend is set to start with the same situation as last week, expect to see bears coming in near the end of the U.S. session and squeezing out bulls yet again before the weekend with a break below $10.400 and possible dip towards $1.302, printing new lows for the week.

MATIC/USD daily chart

MATIC/USD daily chart

Putting the risk of stagflation aside, the technical death cross is still in place as well, painting a grim prospect, although that could easily be untangled if a substantial risk on event were to run through global markets. That could come from bulls stepping in at lower levels and seeing these current discounts as a steal, together with the fact that they are starting to get accustomed to the current risk situation and pricing in Ukraine as a base case, and no longer as a tail risk. When that happens, expect to see more investors pouring into cryptocurrencies and seeing MATIC hit $1.75 to the upside, and with that move pulling the 55-day SMA back above the 200-day SMA.



 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Editor's Picks

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Bitcoin slips below $65,000 as tariff, geopolitical jitters fuel risk-off sentiment

Bitcoin (BTC) is trading in red, testing the lower boundary of its recent consolidation range at $65,729 as of writing on Monday. The growing tariff uncertainty, along with rising geopolitical tensions, weighs on riskier assets such as BTC.

Pi Network slides further as key support comes into focus

Pi Network extends losses by 4% on Monday, after falling more than 6% last week. Pi Network’s first anniversary on Friday occurred as the token still flirts with all-time lows at $0.1300.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: No recovery in sight

Bitcoin (BTC) price continues to trade within a range-bound zone, hovering around $67,000 at the time of writing on Friday, and falling slightly so far this week, with no signs of recovery.