There is great excitement across the cryptocurrency markets today, even if not everything makes sense at first glance. Polygon (MATIC) shows an incredible price spike compared to other altcoins and Bitcoin. A remarkable turn of events, but can such outspoken momentum last?
Polygon Is On A Roll
When one particular market seems to break out before the rest, there is a reason for cautious optimism. As more markets now resume their reversal process, Polygon (MATIC) aims to remain ahead of the pack. A challenging task, considering how a price decline may just loom around the corner. All markets are volatile right now, and short-term uptrends can lead to even more significant setbacks hours later.
Sourcing Tradingview for some indicators, the opinions remain divided. P_S_trade expects Polygon (MATIC) to hit $1.75 or even $1.85 in the next few hours. Given the recent momentum, not entirely improbable, although that would require another 20% increase. Cryptocurrencies can achieve many things, but markets can only go up for so long before facing a setback.
Sarahtn5421 provides an entirely different opinion. Rather than being bullish, she expects this uptrend to fall apart and even warns about a “trap”. Using the Elliott Waves, it is perfectly plausible that this uptrend will drop to $0.60 over the coming days. Interestingly, she also mentions how Bitcoin will remain bearish until May 26, which is rather peculiar.
Technical Analysis Leans Toward Bearish Side
When market trends like this materialize, it is essential to gather sufficient market data. Performing technical analysis with Fibonacci indicators confirms MATIC holds the 50-day SMA and 78.6% Fib level as short-term support. Two attempts to break through those levels have failed so far, but that doesn’t mean they will not come into play again in the future.
A push to the 50% Fib line is still possible, although it wouldn’t automatically warrant a bullish long-term outlook. For now, traders have to wait and see if Polygon can consolidate above the 78.6% Fib first. Breaking below this level – which is still possible – may warrant shorting the asset to the 100% Fibonacci line.
As we mentioned in an earlier article, MATIC continues to attempt and break out before Ethereum and Bitcoin do so. Some new behind-the-scenes developments spark excitement, although they will not make any impact on the price.
Polygon’s asset maintains a higher daily gain than those two assets, but the sustainability of this momentum remains questionable. Until the leading markets can confirm stability – or break out – remaining cautious with altcoins remains one’s best option.