Polygon price finds support with new all-time highs still in sight for 2021
- MATIC price pulled back after hitting new all-time highs at $3.00.
- The fade found support at the monthly R2 resistance level and historical support.
- Expect bulls to jump on this pullback to squeeze out other new all-time highs.
Polygon (MATIC) price had hit $3.00 on Monday but has since then been on the back foot, pressurized by profit-taking as investors cashed in on the rally since December 14. MATIC price quickly found support around $2.50 and $2.48, with two technical support levels offering an entry to bulls to get in again for a possible retest and break of new all-time highs. With the Relative Strenght Index (RSI) back to moderate levels, bulls have plenty of room for more upside.
MATIC could make new all-time highs for 2021
MATIC price sees bulls trying to keep hold of those all-time highs in reach as price action fades for a second consecutive day after hitting $3.00 to the upside. The fade does not come as a surprise as global cryptocurrencies have been on the back foot since yesterday, and the RSI already touched twice the border with being overbought. Investors have waited for another entry-level before targeting those all-time highs again.
Entry for bulls comes at $2.50 as the RSI is back to more moderate levels, and the price level sees support from the monthly R2 resistance level that should act as support and just below the S2 technical support at $2.48 is still holding: This two-element should count for some pick-up in buying volume as the offer is relatively thin and illiquid. This could be translated into a quick and choppy reversal, stretched into a retest and breaking above $3.00, making new all-time highs.
MATIC/USD daily chart
Although the story for MATIC looks to be bullish, more dark clouds are forming with headwinds coming from global equity markets that are struggling to maintain profits as more and more investors pull their funds to stay out of the markets during the holiday season. This could result in a further correction for MATIC towards the monthly R1 at $2.15. In case that level fails to hold, at $2.00, bulls have the 55-day Simple Moving Average, the orange ascending trend line and the psychological effect of $2.00 significant figure that should create a U-turn in the Matic price action
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
