Polygon’s MATIC has been making impressive gains in recent weeks, pushing towards the $0.84 level. However, technical analysis suggests that a correction may be looming, with all four major time frames (4-hour, 8-hour, 1-day, and 1-week) overbought on the stochastic RSI indicator.
The host of the video, JB from Cheeky Crypto, believes that MATIC’s ongoing price action is part of a larger fifth wave movement within a y wave pattern. He notes that a diagonal pattern is starting the fifth wave, which looks impulsive and suggests another push to the upside before a correction.
JB expects a 30-50% retracement of wave four, with MATIC tending to play well with Fibonacci levels. He identifies potential sell order blocks around 88.74 and 93.13 cents, with a possible retest of the 49 cent level from September 11th.
The target range for the final push to the upside is between 86.5 and 91.12 cents. However, JB warns that a double top formation, which would be bearish, is possible.
Overall, JB expects further moves to the downside for MATIC, with a possible retest of the bear market low around 31 cents. He aims to accumulate more MATIC and won’t sell his current holdings, but he advises viewers to trade safely and use tight stop-loss orders.