Polygon aims towards $3 and new all-time highs, while MATIC outperforms Bitcoin and Ethereum.
MATIC price action rallies in opposition to the wider cryptocurrency market.
MATIC was in an ideal position for a catalyst to propel it higher.
On the horizon lies a new all-time high weekly close.
MATIC’s price has been on a bullish streak, trading to practically every other cryptocurrency’s inverse. As a result, it was ideally poised for a rally, and it is currently on course to set a new all-time high weekly closing.
The price of MATIC rises during a sell-off for the three reasons listed below.
The MATIC price has overcome a key stumbling block on its way to fresh all-time highs. The breakthrough over $1.74 is the first cause for the recent surge. The 61.8 percent Fibonacci Retracement and the final high volume node in the 2021 volume profile are both found around $1.74. MATIC will have an easier time heading up than down if it breaks and closes over $1.75. Above $2.00, the volume profile becomes noticeably thinner.
The shift of the RSI from bear market to bull market levels is the second cause for the surge. Since mid-August, the MATIC price has been trading in bear market circumstances in the Relative Strength Index. Buyers, on the other hand, have tested the ultimate overbought level of 65 six times since October 13th. The Relative Strength Index (RSI) switches into bull market conditions with a breakthrough above 65 and a rise to 70.
The third and last reason for the rise may be overlooked by some traders. The MATIC price has reached an all-time high of $2.44, although the all-time high closing is $1.82. As a result, buyers are most likely setting MATIC for a fresh all-time high closing on the weekly chart. This would be a major event for MATIC, and it would almost certainly serve as a springboard for greater pricing.
However, extreme caution should be exercised. To keep these new multi-month highs, MATIC pricing needs to see continued purchasing pressure and bullish confidence. If purchasers do not support MATIC, the consequence will very certainly be a bull trap, with a flash collapse towards $0.80.