• Polygon price action is still stuck in an upward trend channel.
  • MATIC’s current level looks a good buy near the lower end of the channel.
  • Expect a return to the middle of the channel or swing to the upper band once global markets turn green again.

Polygon (MATIC) is still respecting the trend channel defined since July 2021 even after four consecutive days of losses. As MATIC price nears the lower range band, an excellent buy-entry presents itself to be part of the market before it swings back towards $2.50. With that move, a breakout above the upper trend line could be in the making with $2.90 as a target, as seen on December 26.

MATIC bulls stand ready to engage as momentum builds for a return to $2.90

Polygon price continues respecting the uptrend channel with some false breakouts above the upper band. With price action slipping further lower but still contained, bulls will want to start building up a stake in MATIC coins as a swing to the upside could be just around the corner. A break above the monthly pivot around $2.40 could see a test of $2.48.

At that point MATIC price could be set for either another fade or a break higher, from where things could become interesting. A daily close above $2.48 would open the door for an attack on $2.90, and the monthly R1 resistance level at $3.20 – it would also mean the $3.00 level would finally be broken firmly to the upside. From there, a repetition of the same pattern that occurred at the  previous highs will probably replay itself, with yet a return to the lower boundary of the trend channel.

MATIC/USD daily chart

MATIC/USD daily chart

Downside risk for MATIC could be sparked by a rejection at $2.48, as seen on January 12. Investors would start to lose faith, leading to an accelerated correction towards the lower end of the channel and break below it towards $1.75, the first line in the sand as a defence. Below $1.75, there is the monthly S1 support, the 200-day Simple Moving Average, and $1.57 as technical support levels which may keep price from falling any further.

 


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.

Recommended content


Recommended Content

Editors’ Picks

XRP rally likely as Ripple Swell conference is held this week

XRP rally likely as Ripple Swell conference is held this week

Ripple trades above $0.5400 early on Monday. The altcoin added over 2% to its value on the day, ahead of a key event. Ripple, a cross-border payment remittance firm, is gearing up for its annual conference called Ripple Swell. 

More Ripple News
Bitcoin Price Forecast: BTC eyes return to all-time highs

Bitcoin Price Forecast: BTC eyes return to all-time highs

Bitcoin trades close to $66,000 on Monday. The largest asset by market capitalization has noted a steady increase in its demand among traders since April 2024, according to data from crypto intelligence tracker CryptoQuant. 

More Bitcoin News
Crypto Today: Bitcoin, Ethereum rally, XRP recovers even as institutional demand for BTC, ETH ETFs slows

Crypto Today: Bitcoin, Ethereum rally, XRP recovers even as institutional demand for BTC, ETH ETFs slows

Bitcoin rises towards $65,000 on Monday, gaining nearly 4% on the day. Ethereum adds over 3% to trade above $2,500. XRP edges up above $0.53 but trades within its recent range.

More Cryptocurrencies News
Solana Price Forecast: SOL gears up for double-digit gains as demand for meme coins jumps

Solana Price Forecast: SOL gears up for double-digit gains as demand for meme coins jumps

Solana continues its upward trend this week, rising above the $150 level on Monday. The token of the Ethereum-alternative smart contract chain has gained 3% on the day and is gathering positive momentum at the time of writing. 

More Solana News
Bitcoin Weekly Forecast: Will BTC decline further?

Bitcoin Weekly Forecast: Will BTC decline further?

Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.

Read full analysis
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

BTC

ETH

XRP