MATIC is Set to Grow

The fan-favorite Polygon (MATIC) may rocket once more to the peaks of December 2021. Perhaps it's not a matter of if, but when.

As can be seen in the MATIC graph, it has led an upward trend from the beginning of 2021 to the beginning of 2022, where the trend begins to change to a bearish one from April of that year.

In this analysis, we are going to use the Fibonacci extension based on trends to be able to estimate how far this new bearish trend can go, and we will also observe the patterns that the asset price is currently following.

In this first part, we can see how the price respected the trend line perfectly, until it is destroyed with a fake break-out which finally ends up confirming the end of the trend. To correctly use the Fibonacci extension, we shall select the bearish impulse which breaks the trend and the retracement that tries to recover the trend again, to see how far this new impulse can go.

As can be seen in one of the most important points of Fibonacci, 178.6 retraces and begins with a bullish momentum.

The new uptrend that is currently consolidating looks like just a small pullback in the form of a flag to continue descending in the near future. As we know that the price has memory and tends to repeat patterns and figures, the movement of the last 10 months has been replicated with blue candles.

If the price repeated the movement (without the need for it to be exactly the same), we would observe how it would almost reach 200% of the Fibonacci extension, the maximum point where the price should begin to regress, since below that point we would be before one different trend. After touching that point, the price should start moving upwards again.