- MATIC price is currently facing headwinds around $1.87, hinting at a formation of a swing high.
- If true, investors can expect Polygon to retrace 12% to $1.65 before kick-starting a 30% upswing to $2.13.
- A breakdown of the $1.52 support level will invalidate the bullish thesis.
MATIC price looks ready for a correction as a potential swing high seems to be forming. This development could lead to a correction that will allow sidelined buyers to purchase Polygon at a discount and kick-start a quick run-up.
MATIC price prepares for higher highs
MATIC price rallied 30% over the past four days from $1.52 to $1.96. This upswing is currently facing a slowdown but will likely set up a swing high above $1.96. This formation will result in a temporary pullback to the 62% or 70.5% Fibonacci retracement levels at $1.69 and $1.65, respectively.
A retest of either of these two barriers will serve as a buy opportunity for sidelined investors who missed the initial leg-up. Therefore, market participants can expect MATIC price to see a bullish reaction around the levels mentioned above.
A quick run-up that slices through the swing high at $1.96 will confirm the start of a rally. The likely target for market markers would catapult MATIC price above the double top at $2.13, where buy-stop liquidity rests. This run-up would roughly constitute a 30% ascent from $1.65.
MATIC/USDT 4-hour chart
On the other hand, if MATIC price fails to hold above $1.65, it will retrace to the subsequent level at $1.62, where it could give the uptrend another go. However, a daily close below $1.52 will create a lower low and invalidate the bullish thesis.
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
Editors’ Picks
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Solana, Base and AI meme coins rally, are speculative tokens making a comeback?
Meme coins are typically considered more speculative than the rest of cryptocurrency categories. Despite the label, hedge funds and institutional investors have warmed up to meme coins this cycle.
RWA narrative could make a comeback after nearly 50% correction in CFG, ONDO, MKR
Bitcoin halving and developments in the AI sector are the key narratives this cycle. The Real World Asset (RWA) tokenization narrative gathered steam with BlackRock’s tokenized asset fund launch on Ethereum in March 2024.
These cryptocurrencies could face selling pressure according to an analyst: STRK, ENA, OMNI, JUP, ONDO
Thor Hartvigsen, investor at Heartcore Capital and a crypto analyst has identified a list of cryptocurrencies that are expected to see a massive increase in their supply. Typically, an increase in selling pressure negatively impacts an asset’s price.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.