- MATIC price action doesn’t make new lows because bulls continue to believe in the uptrend.
- Polygon trades within a global environment where two major bearish events set the tone. This puts pressure on the technical bearish outlook.
- Expect to see a moderate risk-on tone, with MATIC booking some gains prior to heading into the weekend.
Investors are still licking their wounds from a hectic trading week that saw bulls rallying on Wednesday and being squeezed out on Thursday. Today, the price of Polygon (MATIC), is tilted again to the upside. Investors will place moderate bets on the long side as peace talks continue and cryptocurrencies are set to be the only tradable asset. Investors are trying evaluate the longer-term situation, with stagflation in Europe still in place and peace not in sight for Ukraine. Expect downward pressure, but MATIC may still have some opportunities to make some gains.
Bulls have a small window for opportunity with Polygon’s price
MATIC price action was just shy of touching $1.600 earlier in the week, but bears quickly reacted as the European Central Bank made many questions about when the central bank would hike its rate. Lagarde’s message was clear: although inflation and stagflation may start to kick in, the ECB is unable to act at the moment because it needs to support Europe’s economy in order to deal the refugee crisis as well as the current energy price crunch. The bears still have the upper hand, as the main bearish factors in the markets have not been resolved. Therefore, bulls will need to settle for short-term trades and small windows of opportunity.
MATIC price action reflects that this week. Bulls will try to buy the dips, but they will need to book profits quickly because a complete back-off can happen at any time. Today’s pattern is similar with potential upward movement towards $1.50 and possibly a test at $1.542, which was the high for this week. The weekend will begin with the same situation as last weekend. Bears will be coming in towards the end of the U.S. session, squeezing bulls once more before the weekend with a break under $10.400 and possibly a dip towards $1.302, creating new lows for this week.
MATIC/USD daily chart
Even ignoring the risk of stagflation, the technical death cross is still in effect. This makes it a grim prospect. However, it could be untangled if an event were to occur that poses a substantial risk to global markets. This could be due to bulls entering at lower levels and viewing these current discounts as a bargain. Also, they may have started to see the current pricing and risk situation in Ukraine as a base case and not as a tail risk. As such, investors will be more inclined to invest in cryptocurrency. MATIC could hit $1.75 on the upside and that move would lift the 55 day SMA back above 200.