• Polygon price tanked further on Saturday, shedding almost 10% of its value.
  • MATIC price got caught by bulls just above $1.00, however, stabilising the selloff.
  • On Sunday and in the ASIA PAC this morning price bounced higher, helped by RSI.

Polygon (MATIC) price has been on a risky drop towards $1.00 over the weekend. Although it was expected that on Saturday, a turnaround would occur, traders instead saw a continuation of the dollar strength squeeze, and investors turning their backs on risk assets. A turnaround got triggered on Sunday, however, as the Relative Strength Index (RSI) dropped into oversold territory and made bears take their profit and close their short positions, spelling a turnaround in MATIC price back up to $1.312.

MATIC price set to regain 28% of the value

Polygon price has been on the back foot last week and finally saw a turnaround on Sunday. Although cryptocurrencies were the only tradeable asset over the weekend, it was strange to see MATIC price lose 10% on Saturday while dollar strength paused and no actual headlines came out of any corner. In this pure technical squeeze, bears went in for the final push, locking in their profit and closing their short levels with the RSI trading in oversold before climbing back above. 

MATIC price could see bears handing over the keys to bulls now as $1.00 is relatively low and takes us back to July of last year. Time for a turnaround, as the bulls have the RSI entirely in their corner and a lot of ground to cover to the upside. Expect a break above $1.187 before hitting that fundamental level of $1.312, which holds 28% of value.

MATIC/USD

MATIC/USD daily chart

Risk to the downside comes from another eventful week with three major central banks coming out with possible further tightening of their monetary policy. This means that investment conditions are fading and are becoming less attractive. This will trigger a headwind in cryptocurrencies as investors turn away from risk assets, with MATIC possibly breaking below $1.00, and only $0.96 can prevent MATIC price from a nosedive of 40% to $0.62.






 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Can Solana price enter a 50% relief rally?

Can Solana price enter a 50% relief rally?

Solana price is in the beginnings of a quick recovery rally that could propel it back to levels that were last seen nearly two weeks ago. Two technicals back the claim for why SOL could be ready for this ascent.

More Solana News

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.

More Ethereum News

Assessing the possibility of a 40% upswing for Cardano

Assessing the possibility of a 40% upswing for Cardano

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

More Cardano News

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin price is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the highier time frames suggests that the bottom is not in yet.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP