Polygon price readies for a 20% climb as MATIC pulls back to correct June 2022 cycle

• Polygon price has reached its highest since August, recording a 6% surge in a week.
• MATIC could extend 20% to test the supply zone at $0.645, uptrend confirmation above $0.6757.
• Invalidation of the bullish outlook will occur upon a 3-day candlestick close below $0.4894.

Polygon (MATIC) price is attempting a recovery rally for the second time this year, trying to recoup the ground lost during the June 2022 cycle. It comes at a time when altcoins are leading the crypto market crash, but there is hope, considering prices appear fired up by speculation that October has historically been a good month for trading.

Polygon looks to plough back from June 2022 cycle

Polygon (MATIC) price is up 6% in the last week and 5% in the fourteen days as it tries to nurture a recovery rally. It comes after a 40% slump, beginning mid-July. Technical indicators such as the Relative Strength Index (RSI) and the Awesome Oscillator (AO) support this outlook.

For starters, the RSI is making its second attempt to test the 50 midline after a recent rejection. Historically the second go has always done it for Polygon price, facilitating a northbound move. Regarding the AO, it has sustained a steady flow of green bars to solidify the growing momentum.

Increased buying pressure above the current price could see Polygon price test the supply zone at $0.6450 to $0.7075. A break and close above its midline at $0.6757, which coincides with the 50-day Exponential Moving Average (EMA), would confirm the uptrend. In a highly bullish case, the gains could see MATIC reclaim above $0.8146, levels last seen on July 15, where the last downtrend commenced.

MATIC/USDT 1-day chart

Conversely, a rejection from the supply zone, an area characterized by aggressive selling, could send Polygon price south toward the support floor at $0.4894. A decisive 3-day candlestick close below this level would invalidate the bullish thesis. In the dire case, the slump could send MATIC to the mid-June 2023 depths around $0.3160.

As a side note, investors should be wary of trying to catch a ride on crypto solely on these moments of momentum.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Share: Cryptos feed

Source