Polygon (MATIC) up 70% in October, what’s next?
The upward movement of Polygon (MATIC) peaked on October 28, increasing 28% in one day. A short-term decline is possible, but could soon hit an all-time high.
MATIC has increased since September 21st. It broke the USD 1.74 resistance area on October 27 and rose significantly the next day.
The breakout is important as the token has finally risen above the September highs after falling steadily since September 5th. The next area of resistance is at $ 2.42, near the all-time high.
Despite the breakout, technical indicators are still giving mixed signals. MACD is in positive territory and increasing. However, the RSI, a momentum indicator, has fallen below 70 (red symbol). This is a sign that the upward momentum has slowed.
In addition, MATIC has yet to validate the USD 1.74 zone as a support. After the breakout, the price will usually retest the breakout level before resuming the upside move.
Therefore MATIC could do this before starting another upward movement.
MATIC / USD daily chart | Source: TradingView
MATIC made a short-term Lower Top (red symbol). This is a bearish sign as it shows that the second attempt to move up is weaker than the first.
In addition, the presence of long top wicks is also a sign of selling pressure.
This also reinforces the possibility of MATIC falling into the $ 1.74 zone again.
MATIC / USD 6-hour chart | Source: TradingView
MATIC / BTC
The MATIC / BTC pair is not as bullish as its USD pair. As the pair faces strong resistance at 3,450 satoshis.
However, it broke a descending resistance line from the all-time high in May, indicating that the long-term correction has been completed despite resistance from the 3,450 Satoshis zone.
Therefore, while a short-term decline is possible, the most likely scenario would be for MATIC / BTC to eventually break above the 3,450 Satoshis zone.
This would also be in line with the MATIC / USD volatility, which could also decrease in the short term.
MATIC / BTC daily chart | Source: TradingView
You can see the MATIC prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto