Polygon (MATIC) has been on an uptrend since breaking out of a rising wedge pattern last week. Of all the time frames examined by CoinGecko, MATIC is rising, revealing the highest increase (41.9%) on the monthly time frame.
Crypto has a good rally, able to climb 13% in the last seven days. But, there is a lot of ground to cover.
The token is currently trading at $1.05, lower than its opening price of $1.30, indicating that it was strongly rejected at that level. As the Stoch RSI value of the MATIC token has been trending down from the overbought side recently, this poses a major risk to the bulls.
Will MATIC be able to maintain its stability or will it eventually fail?
Major Correction Forms for Polygons
After starting its ascent in late October, the coin is currently in its correction phase after a long wick rejection at the $1.3075 price level. While the Stoch RSI price is declining, the CMF index is trending higher, giving a boost to the bulls.
However, rallies such as a MATIC are susceptible to corrections, which often occur after the asset has received rejection. However, the shorter time frame is showing that MATIC is consolidating above the $1.1241 support level.
The Bull-Bear Strength Indicator is currently on the bears side and is in direct opposition to the CMF indicator. If MATIC breaches the support range at $1.1241, the bulls are likely to stabilize the price near $0.9367, which still favors MATIC’s further higher path.
As the polygon continues to grow are linked As with traditional financial institutions, investors and traders must monitor macroeconomic developments.
MATIC DISPLAY ON THE CROSSHAIR
As MATIC reaches new heights and its involvement in the traditional financial sector becomes more apparent, its performance in the coming days will reflect this development.
As institutions see Polygon as a gateway to Web3 and DeFi, the coin’s stabilization above the 23.60 Fibonacci retracement line could be an impetus for further rally.
This could be the start of a new era for Polygon, as increased institutional interest in Web3 technology and DeFi will bring in new investors and traders.
But for the time being, MATIC investors and traders should be prepared for a sustained corrective period and avoid getting greedy, as it could lead to another downtrend in the market.
This volatility in prices also disrupted the link of MATIC BitcoinThis is good news that BTC is trading in losses. We should expect more volatility for MATIC in the coming days.
MATIC total market cap at $8.5 billion on the daily chart | Featured image from Blockchain News, Chart: TradingView.com