MATIC, the multichain aggregator protocol built on Ethereum, is reporting equal trading volumes as to its mother blockchain network, Ethereum.
Matic, the high-speed and gas-less alternative cryptocurrency and technology, certainly attract high interest from developers and users, which may be seen as a valid reason to expect further gains in the Matic coin price.
However, before jumping to conclusions, the charts tell us a different story – at least in the short and medium-term.
MATIC Coin Price Goes for Running Flat Variation?
In just a few days, the Matic vs the Dollar pair has seen a drop from its all-time high of $2.7 down to $0.74.
The structure down in (A) and the nearly equidistant retracement seen in (B) hint at a flat pattern correction as the latter corrected over 90% of the former. As a 335 pattern and with waves (A)(B) completed, we can now expect wave (C) to end in a 5-wave fashion. The question is where to?
Looking at the length of 1 and 3 of (C) suggests that this is likely the running rather than the expanding variation of irregular flats. This means that wave 5 could end near the 0.236 retracement of (A) at $1 as an expanding ending diagonal. Without wave 4 completed, however, a short-term upside can be well expected.
Matic Coin, 1hr Chart
What Could Confirm an Alternative Structure?
Should prices break past $1, and preferably the low at $0.74, we could expect to see the expanding flat variation. This could bring the Matic coin price further down, with a potential double-four forming at the $0.25-$0.30 zone, where buyers have shown high interest in the past.
However, if prices break past $2.3, the main scenario analysed above will most likely be invalidated.
Thereafter, traders can expect one of two alternatives to take place. The first one will see the correction in ④ being a (W)(X)(Y) double zigzag. This would suggest that the previous low is likely to be revisited as waves y of double zigzags often reach wave w or extend 0.786 of wx.
Otherwise, traders can expect the trend to continue higher and most likely without reaching a fresh local low (low opacity red waves). This alternative will see the correction in ④ finished at the $0.74 low and a bullish impulse that can be expected to reach double-digit highs in the long term.
Matic Coin, 1hr Chart
Thinking forward, don’t forget that correcting in wave ④ means we still expect prices to register a fresh high, once of course, the correction is confirmed complete.
For more details, on this Matic coin price forecast see this video.