We’ve obtained one other longer-term setup to take a look at, this time on Polygon (MATIC) as bulls have held a significant help space like a champ. Is there a return to the uptrend forward?
MATIC/USD: Every day
MATIC/USD Every day Crypto Chart
Yesterday, I briefly mentioned the macro image and the way the latest extraordinarily bearish affect on the crypto market could also be fading. That makes severely crushed down digital property with sturdy fundamentals engaging for longer-term lengthy positions, particularly if bullish international sentiment returns.
If that state of affairs had been to play out, I identified a technical setup to observe on bitcoin, and for immediately, I believe there’s an analogous setup to observe in Polygon (MATIC).
Ethereum‘s community congestion and excessive gasoline charges has made layer-2 scaling options like Polygon (MATIC) an asset to observe for potential worth appreciation in 2022.
Not solely is the layer-2 scaling narrative doubtless to attract in capital, however Polygon’s rising publicity to the NFT and gaming markets is probably going very engaging to buyers as nicely.
That is really already the case as Polygon raised $450M final week from large identify buyers like Sequoia Capital, Tiger International, Dragonfly Capital and others within the combine. When large buyers leap right into a venture, this vote of confidence may entice different gamers, probably bidding up the worth over time.
When it comes to worth motion, there are arguments that might draw within the technical merchants and short-term gamers. We’ve obtained a easy setup trying favorable for the bulls as MATIC/USD’s latest drop from an all-time (round $2.88) to the January low of $1.30 appears to have stabilized.
This space is a significant psychological space that flipped from resistance to help again in November, and the longer this space is ready to maintain, the chances of a return to the uptrend develop.
And if utilizing this space to construction a long-term lengthy place, with a decent cease under the present swing lows and when concentrating on the earlier ATH and past, you may have potential return-on-risk setup starting from 2x – 3x (relying on the place you set your entries and exits, or the way you scale out and in of a place).
However what do you all suppose? Is it time for MATIC to return to the uptrend? Or will the macro setting worsen and ship the crypto markets decrease? Let me know within the feedback part under!
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