- MATIC price pulled the rug on any short-sellers below the lower trend line of the rising wedge and below the Ichimoku Cloud.
- Strong bounce back into the rising wedge and above the Tenkan-Sen points to yet another likely breakout above the rising wedge pattern.
- Back and forth price action within the overall wedge pattern is expected to continue.
MATIC price rallied nicely off some levels that weighed heavily to the downside. Bulls were mainly on the sidelines, and bears were actively shorting – for good reasons. The January 7 close below the rising wedge followed by the January 8 close below the Ichimoku Cloud would provide the basis for any trader to look at the short side of the market.
MATIC price traps short-sellers and makes another run towards a breakout above the rising wedge pattern
MATIC price is poised for significant expansion if it finally generates a sustained breakout above the rising wedge pattern. MATIC has been trading inside and slightly above this bearish reversal pattern since October 2021, with no clear breakouts but many fakeout moves. However, none of the fakeouts above the upper trendline have generated a sustained sell-off.
MATIC still has some room to confirm a breakout from a time cycle perspective. But bulls and bears should watch out for the week of January 28. On the weekly Ichimoku chart, that is the next Kumo Twist. Kumo Twists have a very high chance of creating major and minor highs/lows if an instrument is trending into the period of the Kumo Twist. So unless MATIC price performs a strong breakout before the period of the Kumo Twist, it could face some selling pressure during the final week of January 2022.
MATIC/USDT Weekly Ichimoku Chart
Ideally, MATIC would trade sideways or slightly lower until the Kumo Twist appears, giving MATIC price a minor swing low that would help establish a sustainable trend higher.
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.