Polygon’s MATIC at risk of collapse to $0.65

MATIC price continues to vex bulls and bears alike with the directionless and sideways trading behavior. Moreover, the past few trading days have seen MATIC drop below the Cloud and several other critical Ichimoku support levels, warning of some near-term sell-side pressure.

MATIC price dips below critical Ichimoku levels, but late session buyers enter to provide support

MATIC price has created some mixed feelings throughout the Tuesday trade session. From the open of the daily candlestick at 2000 EST to 0600 EST, MATIC dropped over -8% to create new ten-day lows. However, the final hours of the Tuesday session saw buyers come in and rally MATIC higher to recover almost all of the losses from the open.

The whipsaw in price action could be view as a bullish recovery or the start of a bear trap. From an Ichimoku perspective, MATIC price remains below Senkou Span A, Senkou Span B, the Kijun-Sen and the Tenkan-Sen. In other words: the outlook remains bearish on the daily chart.

Buyers came in to support MATIC price around the $1.19 value area, which is the 38.2% Fibonacci retracement level. If sellers push MATIC below that zone, then the road to lower prices is wide open, and a return to the $0.65 level could happen very, very quickly.

MATIC/USDT Daily Ichimoku Chart

However, bulls might have an opportunity to cause some significant damage. The Kumo Twist for MATIC price is just ahead (October 15^th). If the current short-term rally can generate a short squeeze, then MATIC should have an easy time moving through the thinnest part of the Cloud (the Kumo Twist) and rally MATIC to the $2.00 value area.