- MATIC price has breached a daily trend line.
- Polygon price has seen increasing volume.
- Invalidation for the bullish thesis is a breach below $1.24.
MATIC price is displaying strong bullish indicators. Traders should be looking for entries as the price could rally an additional 20%.
MATIC price says, "trade what you see, not what you feel"
MATIC price displays vengeful price action that every professional trader loves to see. As noted by Sam Seiden at its most recent FX seminar, traders often have to change their minds on a whim, and there's nothing wrong with that. As Sam mentions in the seminar, "to be a successful trader, it is important to make trading decisions based on what you see and not what you feel."
Traders are likely on an emotional edge filled with doubt as nearly all cryptos have rallied 10% since the fake-out that occurred early on Monday. However, the MATIC price hints that the bulls are much stronger than just a 10% rally and more gains towards $1.70 for an additional 20% could occur.
MATIC price is setting up a textbook counter-trend rally. For one, the Polygon price broke through the lower half of the range on Monday and closed back in extreme bullish behavior, printing a large bullish engulfing candle at $1.419. The candle is now the largest within the downtrend and has a slight uptick in volume. The Relative Strength Index is also resting within the buyers' territory on the daily chart.
MATIC/USDT 1-Day Chart
Invalidation of the bullish thesis is a few ticks below the February 24th swing low at $1.24. MATIC price should under no circumstances breach this level to maintain a bullish bias. If this bearish scenario were to occur, the MATIC price could fall up to 20% back towards $1.14 to validate the early April bearish thesis.
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.