Fxequity

Crypto Watchlist: Uptrend Dip on Polygon (MATIC)


Threat property are on a swift draw back transfer at this time, which  means there could also be potential alternatives for crypto merchants to get into stable uptrend performs at higher costs. Polygon (MATIC) arguably matches that description, so we’ll test it out to see if we are able to discover areas of curiosity the place merchants could act.

MATIC/USD: 4-Hour

Polygon MATIC/USD 4-Hour Crypto Chart
Polygon MATIC/USD 4-Hour Crypto Chart

The Federal Reserve shook up the markets this week as their willingness to lift rates of interest/cut back their steadiness sheet appeared extra aggressive than anticipated of their assembly minutes launched yesterday. Bond yields and the U.S. greenback took off on the occasion, forcing decrease the remainder of the markets, particularly greater threat property like tech shares and the crypto space.

The query now’s whether or not or not that is only a dip in threat sentiment or the beginning of a longer-term reversal? We don’t know, however with layer-2 scaling options prone to get extra consideration in 2022 after seeing scaling points with Ethereum and different layer-1 blockchains in 2021,  Polygon (MATIC) involves thoughts as a possible market that will attract consumers throughout this general dip in threat.

As we mentioned in our last post on Polygon (MATIC), the Polygon community is a layer-2 scaling answer for the Ethereum community and has been integrating new tech to hurry up transactions, in addition to make them extra personal. That story hasn’t modified within the final couple of months, so it’s doubtless the dip from all-time highs at $2.92 on the finish of December has good odds of being a shopping for alternative in an already well-established uptrend.

Trying on the 4 hour chart above, we are able to see that MATIC has been grinding greater since final Summer season, however has taken a 25% dip because the begin of the brand new 12 months, now testing the rising 100 easy shifting common. It’s unlikely it will attract main help, particularly with more top tier economic updates from the U.S. that would shake up the worldwide markets and U.S. greenback once more.

As a substitute, we’ll be be holding out to see if we get a deeper dip in MATIC/USD to the world of potential sturdy help between $1.50 – $1.80. We are able to see that this space is a confluence of a number of technical arguments for help: a rising ‘lows’ sample, rising 200 SMA, and a earlier space of sturdy curiosity.

If that market retests this space and we see bullish reversal candles play out, then we’ll take into account a possible swing (or longer-term) lengthy place in MATIC/USD to play expectations that layer-2 networks may acquire additional adoption in 2022. After all, broad risk sentiment is an enormous issue as nicely, so we’ll take a look at the image there too earlier than making a transfer. 

What do you all assume? Is MATIC a buy? Do you assume layer-2 chains will acquire additional floor? Or will we see the crypto market dip additional because of broader threat sentiment strikes? Let me know within the feedback part beneath!

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market includes threat. Please learn our Risk Disclosure to be sure to perceive the dangers concerned.



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