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Polygon’s Matic: Should You Hold Your Breath or Run for the Hills?

POLYGON: Should We Be Worried About MATIC?
POLYGON: Should We Be Worried About MATIC?

Crypto can be a rollercoaster, and Polygon’s Matic is strapped in for a wild ride this week. If you’re holding MATIC tokens, buckle up – JB is diving deep into the technical analysis to uncover whether you should be cheering or fearing.

Time Travelers on a 4-Hour Journey:

JB zooms in on the 4-hour timeframe, where Matic’s recent price plummet to 74 cents raises eyebrows. This nosedive broke the December 19th bottom, sending chills down some spines. But is this a true fall from grace, or just a hiccup on the way up?

Impulsive Plunge or Calculated Dip?

JB cautiously questions whether the drop truly qualifies as an “impulsive movement” in technical jargon. Internal waves four and five hint at a potential breakdown, but the verdict’s still out on whether we’re witnessing a full-blown five-wave nosedive.

Eyes on the Prize: Bitcoin ETF Spectacles

While Matic dances its own technical tango, the crypto spotlight shines brightly on the upcoming week’s potential SEC Bitcoin ETF approvals. This event could ripple through the entire market, impacting Matic’s future trajectory.

Bearish Whispers: EMAs and Stochastics Speak

Technical indicators whisper “caution” for Matic. The price languishes below the 200 EMA, 50 EMA, and 50 SMA, and the Stochastic RSI on the 4-hour chart screams “overbought.” Downside momentum whispers of potential dips to 70 or even 65.93 cents if the five-wave breakdown scenario unfolds.

But Wait, There’s More!: A Glimmer of Bullish Light

Hold your horses, bears! Amidst the bearish chorus, a lone wolf sings a bullish tune. The RSI divergence suggests a potential upside move, hinting that the downtrend might not be set in stone.

A Maze of Possibilities: Exploring the Alternatives

JB paints a broader picture, exploring alternative scenarios. If the bullish divergence plays out, Matic could retrace to the 95-to-a-dollar range. There’s even a chance for an upward push before a downside correction, following an ABC pattern.

Smart Money Knows? Adding Complexity to the Equation

The “smart money” concept throws another wrench into the works. This theory suggests potential for further upside, adding to the already complex analysis.

Weekly Weigh-In: Fibonacci Rejections and Market-Shaping Events

Zooming out to the weekly chart, JB can see rejection at the 702 Fibonacci retracement level, highlighting the crucial role of those upcoming Bitcoin ETF approvals in shaping the market landscape.

Bearish Bias, Open Mind:

While entertaining alternative scenarios, JB maintains a bearish bias, anticipating further downside for Matic. However, caution is key – the crypto market is notoriously fickle, and a swift shift in sentiment could send Matic soaring once again.

Trade Wisely, Watch the Skies:

The message is clear: tread carefully this week, crypto adventurers. Stay vigilant for potential market shifts, and embrace the uncertainty with a healthy dose of cautious optimism.

Looking Ahead: Ups, Downs, and More to Come

Remember, our journey doesn’t end here. Another potential upside push before a correction may just be around the corner. So, like and subscribe to stay updated on our future analyses, and get ready for another week of thrilling twists and turns in the ever-evolving crypto saga.

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