- MATIC price is undergoing a correction after a 61% bull rally since May 25.
- A retest of the 50% Fibonacci retracement level at $1.722 is likely to trigger an explosive uptrend.
- If Polygon breaks down $1.49, it will invalidate the bullish thesis.
MATIC price shows the exhaustion of bullish momentum after a massive ‘up only’ rally since hitting a local bottom on May 23. Now, Polygon is likely to retrace to stable support levels before kick-starting another leg up.
MATIC price pulls back for a higher high
MATIC price created a swing high at $2.44 on May 26 and has retraced nearly 21% since then to the 61.8% Fibonacci retracement level at $1.95. Although unlikely, a bounce from $1.95 could restart the uptrend, but it is unlikely to have a massive buying pressure backing it.
However, a pullback to the 50% Fibonacci retracement level at $1.72 will have the most oomph for a potential uptrend, since it coincides with a demand zone that extends from $1.65 to $1.78.
Assuming this pullback does arrive, investors can expect MATIC price to rally 40% to retest the recently set up swing high at $2.44. Following a breach of this level, Polygon could climb an additional 10% to retest its all-time high at $2.70.
If the bullish momentum continues to pour in, MATIC price will ascend 20% to tag the 127.2% Fibonacci extension level at $3.23.
MATIC/USDT 4-hour chart
Regardless of the demand zone, if the MATIC price produces a decisive close below $1.49, coinciding with the 38.2% Fibonacci retracement level, it would invalidate the bullish outlook.
In that case, Polygon might consolidate here or drop 20% to retest the 23.6% Fibonacci retracement level at $1.21.
Share
