It seems every time I turn on the screen, the Polygon price is making a new high. This morning was no different. So what next?
Polygon, which trades under the ticker; MATIC, has exploded higher over the last 24 hours to a new all-time high of $2.7984.
A lot of digital assets are struggling to rebound from recent sell-off. MATIC has bucked this trend, and the Polygon price has added 43% to $2.4950.
On the 15th of this month, I wrote how the Polygon price had recently followed a pattern. The market has been having periods of trading sideways before exploding higher out of the range. Yesterday’s move followed the pattern perfectly.
Back on the 15th, the Polygon price followed a similar path. A sideways pattern was followed by a breakout higher. The price then spent three days consolidating between $1.8903 and $1.4600.
Then, true to form, the polygon price again broke free of this sideways range and went on a blistering rally.
So what comes next for the MATIC price?
Polygon Price Outlook
If the recent trading pattern plays out this time around, we will likely see a period of consolidation ahead. The Relative Strength Index (RSI) indicator is starting to roll over and suggests the price rally may stall soon.
When the price broke higher through 1.50000 on the 13th, it eventually retraced to this breakout level.
The rally in the last 24 hours came after the price broke out of a descending channel at 1.7550. This trend line had been in place from the 15th of May high.
I think the Polygon price has probably risen far to retreat to the 1.7550 level in the next day or two. However, the price can pull back to the $2.0000 area if the rally fades.
Traders may wish to follow the same advice from my last report and wait for a period of consolidation before making a decision.
Trading into parabolic price moves carries too much risk for my liking.