Market

MATIC bulls are waiting for the jump to the new ATH

MATIC price is staging a strong recovery towards new record highs while a bullish histogram pattern is emerging.

The next target is $2.95

MATIC has formed a cup in hand on the 4-hour chart and forecasts a 21% rally towards a new ATH of $2.95. The upside target will only be validated if the token breaks above the pattern neckline at $2.43.

The Arms Index (TRIN) indicator is showing that there are more buyers than sellers in the market, which suggests that the MATIC price is preparing for a rally.

The first line of resistance to appear after MATIC price cuts beyond the neckline will come in at the 78.6% Fibonacci retracement level at $2.51. Polygon will face another challenge at its January 3rd high of $2.59.

Another hurdle will emerge at the Dec 24 high at $2.73. MATIC price might face another hurdle at the 127.2% Fibonacci extension at $2.88, which also coincides with the resistance line on the Momentum Reversal Indicator (MRI).

Polygon could also face additional headwinds at a record high of $2.92 before attempting a fresh high.

However, if selling pressure increases, MATIC price will find immediate support at the 61.8% Fib retracement level at $2.38 and then at the 200 – 4h SMA Simple Moving Average at $2.38.35.

Source: TradingView

Additional defensive measures could arise at the four-hour 21 SMA and the four-hour 100 SMA, which are near the 50% retracement at $2.29.

If Polygon slides lower, there is support at the 50-4 hour SMA at $2.24, then at the 38.2% Fib retracement level at $2.19, coinciding with the MRI support line.

However, investors should note that bullish forecasts could be invalidated if MATIC price falls below the above last defense.

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.