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Polygon’s Matic: Poised for a Pump or Facing a Precipitous Drop?

Polygon update: Will MATIC PUMP from the FED meeting?
Polygon update: Will MATIC PUMP from the FED meeting?

Polygon’s Matic, the native token of the popular scaling solution Polygon, has been on a rollercoaster ride in recent months. After reaching an all-time high of $2.92 in December 2021, the token has since retraced by over 80%, currently hovering around the $0.75 mark. With the upcoming Federal Reserve meeting casting a shadow of uncertainty over the crypto market, investors are left wondering: will Matic pump or plunge?

Current Price Action: A Precarious Perch

On the daily chart, JB can see Matic is currently caught in a tug-of-war between three key technical indicators: the 50 Simple Moving Average (SMA), the 50 Exponential Moving Average (EMA), and the 200-day EMA. This consolidation phase suggests indecision in the market, with bulls and bears locked in a battle for control.

Equilibrium Testing and Potential Retracement

The price is currently testing the daily equilibrium zone, hinting at a potential move downwards towards a target area of $0.64 to $0.58. This bearish outlook is further reinforced by the Stochastic RSI indicator, which is dipping into oversold territory, suggesting a possible retracement before the next move.

Riding the Wave: Where is Matic Headed?

JB is divided on the future trajectory of Matic. JB believes that the token has completed a five-wave Elliott Wave pattern, with the current dip representing wave four and a potentially sharp wave five decline on the horizon. This aligns with the overall bearish sentiment in the crypto market, fueled by concerns about rising interest rates and inflation.

However, JB argues that the current move is simply the beginning of a larger bullish wave, pointing to the recent support found around $0.75 on the hourly chart and a potential stochastic reset. This bullish scenario hinges on a dovish outcome from the upcoming Fed meeting, where a pause in interest rate hikes could trigger a rally across the crypto market.

Weekly Outlook: Clouds on the Horizon

The weekly chart paints a bleaker picture, with the 50 SMA looking to break below the 50 EMA, a potential sign of further weakness ahead. This technical breakdown suggests a longer-term downtrend, with a possible move down towards $0.38 in the cards.

Overall Sentiment: Brace for Impact

While short-term rallies are always possible in the volatile crypto market, the overall sentiment surrounding Matic remains bearish. The confluence of technical indicators and broader market headwinds suggest a challenging road ahead for the token. However, investors should stay tuned to the Fed meeting and other key events that could trigger a shift in sentiment.

Please note that this is not financial advice, and you should always do your own research before making any investment decisions.

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