- Polygon price action consolidates in the middle of the longer-term trend channel.
- MATIC price action still sees substantial interest from investors to defend the uptrend.
- The price target is still set for $3 in the coming weeks.
Polygon (MATIC) has fallen back into the red lower part of the bandwidth after trading mainly in the blue area and even above in the last part of 2022. Price at the moment looks to be consolidating a bit, smack in the middle of the trend channel, together with the Relative Strength Index (RSI) at 50.0. Near-term price action could go either way but expect the uptrend to continue as the golden $3 target remains in sight.
Even if Matic enters the lower end of the channel, $3 remains in sight for the taking
Matic investors who entered back in August probably don’t understand what the media and markets are complaining about when they look at the performance of their portfolio. A steady trend channel has been in play for over five months now with only one breakout, in favor of bulls, which penciled in a new high at $3. As the trend channel keeps grinding higher with no end in sight, a retest of $3 remains within reach.
Price action consolidates these past few days as markets are whipsawing a bit on monetary policy news and geopolitics. Even if the consolidation falls – in favor of the bears, the orange ascending trend line will provide support or at least a slowdown and make sure the uptrend stays in place. Even a false breakout would not be a problem as plenty of support levels are there to quickly catch price and provide a floor for a bounce, including $1.75 and the S1 support level nearby.
MATIC/USD daily chart
Should consolidation result in a return to the upper blue side of the bandwidth, in addition to a few external tailwinds, $3 could be tested again and could result in a new all-time high for the books. Should bulls be able to create a daily close above $2.90, expect even a streak of several new all-time highs to come . The monthly R1 resistance level is a level that will spark profit-taking and result in a fade back down to either $2.90 or a return back inside the trend channel.
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