- MATIC price breakout from a minor correction gains traction above $1.
- Extreme overbought conditions on the weekly chart may not mark a top.
- Oddz Finance and Stakefish deals continue the accelerated adoption of everything Polygon.
MATIC price is buoyed by the new deals announced today, despite broader weakness in the cryptocurrency market. Overall, the outlook remains bullish, but a more sustained, collective sell-off among cryptos will undermine or diminish Polygon’s upside potential.
MATIC price performance exceeds expectations the last four weeks
Today, MATIC price is attempting another sustainable breakout from a minor correction on the daily chart. The developing volume profile has been supportive through most of the trading day, accenting the emotion and commitment that should accompany a breakout into new highs.
The daily Relative Strength Index (RSI) is not registering a new high along with price, creating a bearish momentum divergence, but it is the early stage of the rally. On a weekly basis, the RSI rests at 96, just short of the 96.72 reading in February, suggesting an overbought market. However, there is a caveat to the February precedent. MATIC price continued the rally and climbed an additional 130% over the next two weeks.
Under the bullish thesis, MATIC price should tag the 161.8% Fibonacci extension of the minor correction at $1.32 by the end of the week. If MATIC price overcomes the extension level, speculators should turn their attention to the 261.8% extension of the March-April decline at $1.53.
Due to the weekly RSI precedent in February, the current overbought condition should not void bigger aspirations for MATIC price. The 261.8% extension of the May correction at $1.99 is in the crosshairs, representing a 70% gain from the current price.
MATIC/USD daily chart
To be clear, the only obstacle for MATIC price is an acceleration of the recent weakness in the crypto complex. Meaningful support begins at $1.00 and then the 38.2% retracement of the April-May rally at $0.71.
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