- Polygon (MATIC) price reversed course to the upside.
- Similar circumstances before led MATIC to reach a record high of $3.
- Michael van de Poppe would not be surprised if MATIC is going to test $1 in the coming days or weeks.
2022 has been a bad year for cryptos, but Polygon’s (MATIC) price reversed course to the upside after testing $0.794 as its interim support on Tuesday, May 10. Thus, the price of MATIC rose by 25% to put the price at $0.99. This comes the day after the price dropped by 17% to reach its lowest level since July 2021.
A previous retest of the $0.787-level in July 2021 and the 0.786 Fib line (near $0,61) of the Fibonacci retracement graph drawn from the $0.002-swing low to 2.86-swing high- lead to MATIC raising to its record high of $3 by the end of 2021.
This could lead people to believe that something similar, a sharp upside retracement, might happen to the price of MATIC in the upcoming days or weeks if history were to repeat itself.
Michael van de Poppe, a full-time day/swing trader in cryptocurrencies, agrees with this and yesterday Tweeted that he “would not be surprised if MATIC is going to test $1 in the coming days/weeks if BTC reclaims $30K.
There might be light at the end of the tunnel for MATIC as Polygon CEO, Ryan Watt, recently announced that they are partnering with Meta to create a nonfungible token (NFT) platform for Facebook and Instagram. The hype around this project could surely help MATIC form a stronger price floor.
On the other hand, MATIC risks a bearish continuation if it does not reclaim its 50-week exponential moving average near $1.37 as support.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.