Polygon (MATIC) Prints Rising Wedge, Threatening Sharp Retracement to $1

Briefly-

  • MATIC sees its price returning to borders within a rising wedge.
  • Polygon approaches the final support level that may dictate the next trend’s direction.
  • Seasonality forms conditions for considerable volatility.

Polygon (MATIC) price shows a rising wedge rejection may be developing. With that, MATIC handily outperformed the overall market but failed to maintain the gains and fall within the rising wedge.

MATIC Returns into Wedge, Threatening to Drop Further

Indeed, MATIC price movements have frustrated bulls and bears. A rising wedge is among the most bearish setup in the crypto space. The formation has a higher probability of switching into a lucrative shape. However, price moving beyond the pattern forms a colossal bear trap before generating considerable higher movements.

Polygon’s price actions seem to trick bulls and bears. Market participants wonder if the alt will continue with this behavior or MATIC will record a clear breakout. According to Ichimoku, Polygon price has more challenges dropping than moving up.

The Cloud stands as the final support level for the altcoin, with Senkou Span A near $1.73 and Senkou Span B at $1.63. Both remain beneath the rising wedge’s lower trend-line. MATIC forming a daily close under the Cloud will complete a Bearish Ichimoku Breakout. With the decline under the climbing wedge, MATIC’s total crash might see the alt exploring $1.

Meanwhile, the Ichimoku system prints a bearish outlook regardless of the alt returning inside the wedge. Price stands beyond the Cloud, while Chikou Span stays above the candles. Bulls have to push the alternative coin to close beyond the daily Kijun-Sen and Tenkan-Sen (past $2.15) to refute short-sellers additional momentum.

However, the overall crypto space shows bearishness. Bitcoin and Ethereum had plummeted once more. Excluding stablecoins, digital coins in the top ten trade in red today. BTC retraced further, hovering at $46,843. At the same time, Ether failed to keep the $4,000 mark, trading at $3,767. If such narratives continue, MATIC might move towards the pessimistic target.

What are your thoughts on the current situation in the global markets? You can comment below.

By FellowNeko – shutterstock.com

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