This MATIC price deviation provides an opportunity to accumulate before a 40% rally

MATIC price consolidation deviated below the equal lows at $0.758 on September 19, signaling the sell-stop liquidity run.
A recovery above $0.758 could trigger a 40% rally to sweep the range high at $1.055.
A daily candlestick close below $0.758 that flips the range low into a resistance level will invalidate the bullish outlook.

MATIC price saw a spike in selling pressure over the last 48 hours that breached its range, tightening to the downside. As a result, Polygon collected the sell-stop liquidity resting below equal lows.

If the ongoing price action manages to recover above a crucial support level, it could kick-start a run-up.

MATIC price ready to swing higher

MATIC price extended its 28% crash witnessed between August 14 and August 20 to collect the sell-stop liquidity resting below the equal lows at $0.758. This development has punished eager bulls and will likely recover above the range low at $0.758 and produce a daily candlestick close above it.

This development will signal a buying opportunity and will likely kick-start a run-up. The first level Polygon bulls will target is the midpoint of the range at $0.906, which is 21% away. However, a flip of this barrier into a support floor will open the path to retest the range high at $1.055.

This move would constitute a 40% gain. Since this level coincides with a high timeframe resistance level, investors can expect a local top to form here.

MATIC/USDT 1-day chart

While things are looking up for MATIC price, investors should note that a recovery above $0.758 is required for a bullish move to occur. However, if MATIC price produces a daily candlestick close below the range low at $0.758 and flips it into a resistance level, it will signal a lack of buying pressure and invalidate the bullish outlook.

In such a case, MATIC price could crash to the $0.647 support level to re-evaluate its next move.

Note:

The video attached below explains how the Bitcoin price could influence MATIC price movements.

Share: Cryptos feed

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.

Join Telegram