Cryptonugget: Polygon (MATIC) in a complex engineering setup

In this new crypto nugget on Wednesday, the chosen one of the day is MATIC, the cryptocurrency of Polygon network, in the same way as AVAX for Avalanche or SOL for Solana. Unfortunately, while the network continues to evolve as Layer 2 (an overlay of Ethereum), the asset has not been able to escape the downward spiral that is affecting all financial markets. Without further ado, let’s move on to TradingView to establish the most plausible scenarios for the coming weeks.

This analysis of the MATIC is presented to you in collaboration with the Coin Trading and Its Algorithmic Trading Solution finally accessible to private persons

A monthly bearish trend?

MATIC rate against the dollar on a monthly scale

After a long period of accumulation between May 2019 and January 2021, MATIC exploded last year by registering a all time high Bee $2.93 last December. However, this new high did not allow for a close higher than the May 2021 high. This showed a lack of strength from the buyers. The latter are no match for the decline in which MATIC has been declining for several months.

As these few lines were written, the MATIC is below the summer 2021 low. If the token is a monthly close below $0.62, we will be firm: the monthly trend will be bearish. In this context, the targets will be quite substantial and will correspond to a return of MATIC to the upper end of the range that occurred between May 2019 and January 2021. This would correct the strong price increase that occurred in the first half. the year 2021.

MATIC in full pullback on a weekly scale?

Price of the MATIC cryptocurrency against the dollar on a weekly scale
MATIC weekly rate against the dollar

at theweekly scalethe trend is clearly bearish since the loss of 1 dollar† MATIC has lost the low of the summer of 2021 and has been struggling for several weeks to regain it. This shows the lack of vigor of the buyers to recapture an important level. At this point, the price movement can be viewed as a to withdraw at the low to confirm the bearish breakout.

In this context, the first price target will be the area where $0.36/0.37 where MATIC has recently bounced back. If this level is set to descend, the next downward target is on $0.23† This technical zone was resistance for a few days during the 2021 bullish rally. Finally, the last goal we can have in mind would be a return of the price to the upper bound of the old range that we identified on a monthly scale.

Other levels to monitor on MATIC via the daily scale?

Price of the MATIC cryptocurrency against the dollar on a daily basis
MATIC price against the dollar on a daily scale

at thedaily scale, we understand the monthly and weekly movements much better. You can see the price was sideways at the summer 2021 low for several weeks before losing it, causing MATIC to start another bearish move. The current rejection is very clear and shows the superiority of the sellers. Because this peak is lower than the previous one, the daily trend is therefore bearish. However, with the summer 2022 outlook of calm in the markets, we can bear in mind a bullish rally in the MATIC.

Of course, this recovery would happen in parallel with a bitcoin coming back into effect temporarily. So if the buyers manage to show the tip of their nose, we can have two levels in mind: the 0.78 and the $1.01. However, these are just assumptions as the trend is currently bearish on a monthly, weekly and daily basis. So we have to privilege the lower levels. In this context, you can have in mind two other levels where the price could potentially bounce back: the $0.16 and $0.12.

Here is the situation the MATIC cryptocurrency. In a strong downtrend; will buyers be able to restore momentum in the coming weeks? Until the $0.62 is recaptured, bullish targets will be much less relevant. So keep in mind the $0.36 area. From the moment it is lost, it is better to consider the bearish targets at the levels mentioned throughout the analysis.

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