|

These are the bullish targets for Polygon’s MATIC price rebound

  • MATIC price has breached its downtrend as it recovered above a weekly support level at $0.381 and rallied higher.
  • This bounce is likely to push Polygon up by 10% to retest the intermediate hurdle at $0.477.
  • A four-hour candlestick close below $0.381 will invalidate the recovery thesis.

MATIC price shows an interesting development over the last week that has led it to where it is currently trading now. A combination of two key events has led the altcoin to kick-starting a recovery.

MATIC price launches

MATIC price has been trying to bottom since June 13, which resulted in a battle for control between buyers and sellers. The outcome was that Polygon formed three lower lows and three lower highs. The significant point was the swing low formed on June 19, as it was a reversal point.

Since then, MATIC price has rallied 38% to where it currently trades - $0.431. Interestingly, this recovery bounce is impressive due to one main reason - the formation of a bullish divergence. 

The lower lows formed by MATIC price contrast with the higher lows formed by the Relative Strength Index (RSI). This setup is known as bullish divergence and forecasts an upswing for the underlying asset.

As seen, MATIC price did exactly that. Considering its current position, there is a chance for Polygon to continue this uptrend to $0.477. In total, this move would constitute a 10% ascent from the current positions.

MATIC/USDT 4-hour chart

MATIC/USDT 4-hour chart

Despite the sluggish Bitcoin price action, MATIC price and other altcoins are bouncing aggressively. Nevertheless, a sudden spike in selling pressure that produces a four-hour candlestick close below the $0.381 weekly support level will invalidate the recovery thesis.

In such a situation, MATIC price could crash 38% and revisit the next foothold at $0.234. 

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP recover ahead of US Senate vote on CLARITY Act

Bitcoin edges higher, trading near $77,884 as of Monday, in tandem with broader gains across the cryptocurrency market. Ethereum and Ripple follow Bitcoin’s neutral-to-bullish trajectory, holding key support levels at $2,521 and $1.38, respectively.

Bitcoin Price Forecast: BTC recovery faces headwinds from ETF outflows and elevated Fed rate-hike bets

Bitcoin is recovering, trading above $78,200 on Monday after a more than 4% pullback the previous week. Elevated Fed rate-hike bets and geopolitical risks are boosting the USD, capping BTC’s upside potential.

Pi Network extends gains as ecosystem development supports recovery

Pi Network (PI) extends its recovery on Monday, trading above $0.097 after two consecutive weeks of gains. Continued ecosystem development and improved developer tools are boosting utility.

Cardano Price Forecast: Hovers near key EMAs as cautious metrics leave rallies exposed to selling

Cardano hovers near the key 50-day and 100-day EMAs around $0.200 on Monday after losses of over 8% in the previous week. The technical outlook suggests that bullish attempts remain vulnerable to selling pressure at higher levels.

Bitcoin: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.