- The price of MATIC could experience a sweep-the-lows-liquidation event.
- MATIC’s price has rallied 20% since September this year.
- If bulls can overcome the hurdle at $0.91, then a 45% gain could be on the cards.
The price of Polygon’s native token, MATIC, could witness a sweep-the-lows-liquidation event in the coming weeks.
Here are some of the key levels:
Since the middle of September this year, the price of MATIC has rallied 20%. The Volume Profile Indicator shows a very sparse reading in contrast with the previous MATIC bull run, which could be an early sign of the uptrend losing its strength.
The price of MATIC is trading at $0.8398 following a 0.75% drop in price over the last 24 hours, according to CoinMarketCap. In addition to decreased daily trading volume, the Relative Strength Index (RSI) indicator affirms that the uptrend is in jeopardy.
Prior to the current uptrend rally, MATIC bottomed out in the oversold territory and now faces a key resistance level that spurred the last decline in its price. This resistance level is at $0.93.
Daily chart MATIC/USDT (Source: TradingView)
Keeping all of these factors in mind, MATIC’s price could set up a sweep-the-lows event targeting the $0.60 congestion zone that was established earlier this year in June. This price action would consequently result in a 25% decline from the current price levels.
This bearish trend will be invalidated if bulls hurdle the swing high at $1.05. Traders who have a higher tolerance for risk could also use the $0.91 swing high. Should bulls manage to breach the $0.91 level, a rally toward $1.20 would be on the cards. This move would result in a 45% increase from the current MATIC price.
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