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?
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.
MATIC/USDT Chart by TradingView.com.
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.
MATIC/USDT Fib levels by TradingView.com.
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.
JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.
Cardano prices jumped more than 30% over the weekend. However, bears seemed to have moved in as ADA started...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.