MATIC price quickly gained an extensive bullish momentum as a couple of positive announcements were heavily outspread. Recently, Coinbase added support to Polygon which boosted the price that the asset to regain levels above $0.5. However, the bulls still do not appear to be exhausted enough and hence a notable upswing may make its way out ahead.
On the contrary, the path towards the important resistance at around $0.8 may not be a tedious job as the possibility of a major correction also emerges.
The Polygon price after reaching the bottoms below $0.35, quickly gained significant bullish momentum and underwent a ‘V-shape’ recovery to regain the levels above $0.55. While the asset appears much prepared to head towards $0.8, another turmoil could pull back the price below $0.5 levels again by the end of June 2022.
Also Read: Top Reason Why Polygon (MATIC) Price is Surging High Amid Crypto Bear Market
The recent recovery has no doubt differed from the bearish trend but it may be only for a while. As the price still appears within the captivity of the bears as the descending triangle still appears to be intact. The upswing has not tested the upper trend line at $0.69 yet and hence the price may continue to surge until these levels. However, a huge rejection may be in place at $0.7 which may drag the price back below $0.5.
There may be 2 major reasons for this pullback:
- As the asset is trading within a descending triangle, the pullback may land it at the apex of the consolidation
- The buying volume has spiked-up high without retracing the support throughout the recovery. Therefore, bears may be alert at $0.7 as they continue to remain calm presently
MATIC price as mentioned could drain below $0.45 again amid the correction phase and could revisit the yearly lows again. Here if it rebounds, it may continue to extend the descending triangle. Conversely, if it breaks down below $0.3, it may quickly recover to accomplish the retracement phase. This is when a significant upswing could elevate the price above $1 slicing through major resistance at $0.8.
Collectively, the Coinbase effect on the Polygon price may not remain too long. While the bears are also waiting for the right time to get in. Therefore, despite the current recovery, the MATIC price displays huge possibilities of closing the monthly trade on a bearish note below $0.5. However, the price after the retest is primed for an exceptional bull run ahead.
Also Read: LunaClassic(LUNC) Price May Not Recover Above $0.1 Anytime in 2022! Know Why?
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Source: https://coinpedia.org/price-analysis/polygon-first-target-hit-this-is-the-next-target-for-matic-price-by-the-end-of-june-2022/