- 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
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
FLOKI rallies 9% on Tuesday, proposal to burn over 15.2 billion tokens is in the voting process
FLOKI holders are currently voting on a proposal to burn over 15.24 billion tokens, with 99% of the voters in favor of the event. The meme coin rallied 9% on the day on Binance.
Top 3 meme coins price prediction Dogecoin, Shiba Inu and Bonk: Memes wipe out gains from GameStop rally
Meme coins Dogecoin, Shiba Inu, and Bonk rallied alongside top meme tokens in response to GameStop’s rally on Monday. As legendary trader “Roaring Kitty” resurfaced on X with a series of tweets, meme tokens rallied, piling gains on Monday.
Arbitrum price sets the stage for 30% recovery rally Premium
Arbitrum (ARB) price is showing signals that suggest the downtrend could be coming to an end. If this development is coupled with improving Bitcoin price outlook, then ARB could be due for a quick move to the upside.
XRP climbs above $0.50 as Ripple files motion to seal documents in connection with SEC lawsuit
Securities and Exchange Commission (SEC) lawsuit against Ripple saw an update as the payment remittance firm filed a motion to narrowly seal documents related to the remedies-phase.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.