Market

Rate the possibility of a MATIC retest $3

MATIC has slipped back into the red part of the ascending parallel channel after trading mostly in the blue zone and even oscillated above the channel in late 2021. The price now seems to be consolidating and floating in the middle of the channel while the Relative Strength Index (RSI) is at 50. Short-term price action could go either way but the uptrend is likely to continue as gold’s 3 $ remains in sight.

MATIC targets $3

Last August, MATIC investors probably didn’t understand what the media and markets were complaining about as they reviewed their portfolio’s performance. A stable trend channel has been active for more than five months with only one breakout in favor of the bulls, which helped the price to push a fresh high of $3. As the trend channel continues to move higher with no endpoint, a retest of $3 is possible.

Prices have consolidated over the past few days as the market has been shaken by the geopolitical and monetary news. Even with a bearish consolidation – in favor of the bears – the orange ascending trend line will provide support or at least slow down and allow the uptrend to remain intact. A failed breakout should not be a problem as there are many support levels to quickly sustain the price and provide a floor for a bounce including $1.75 and the nearby S1 support.

MATIC/USD daily chart. Source: TradingView

If the consolidation pushes the price back above the blue area of the channel, $3 will definitely be retested unless there is an external event and a new ATH is possible. If bulls can close above $2.9 daily, there will even be a set of new ATH levels. The monthly R1 resistance is the one that will trigger profit taking and lead to a gradual drop to $2.9 or back inside the trend channel.

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.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.