MATIC price could make a short-term move, but the technicals suggest this could be the final move up.
MATIC price could make a new interim high
Polygon’s MATIC price is worth keeping on your watch list if you are a countertrend trader. Since September 13, the smart contract token has lost 20% of its market value. Still, the technicals from the August 14 swing high into the low look more choppy and corrective than it does impulsive. Thus, a sweep-the-high event could take out overly confident bears in the market.
MATIC price currently auctions at $0.76. The bulls have hurdled the 8-day exponential moving average and are now attempting a breach through a descending parallel channel’s median line. The parallel channel surrounds the swing highs and lows since the August 14th high at $1.05 if market conditions persist.
MATIC price looks poised to reconquer the 21-day simple moving average at $0.80. A buyers frenzy targeting the September 14 swing high at $0.94 should not be ruled off the table under these circumstances.
Invalidation of the bullish countertrend depends on the July 13 thrust candle at $0.58 remaining unbreached. Traders should remember that this is a countertrend play that does not expect the Summer high at $1.05 to be breached. The volume profile confounds this idea as there is mostly a bearish presence within the unfolded waves.
After a clear impulse wave is printed north, the bears could flex their guns and target the $0.60 price level and beyond. Thus traders should keep stopping losses tight to avoid any sharp and unexpected liquidations.