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MATIC Network currently has the highest daily volume traded on Binance after having a fantastic run this past week, gaining over 225%. Is the show over now or has it only just begun? Let’s take a look at both bullish and bearish scenario for MATIC.
Highlights:
- MATIC to resume its uptrend after this dip?
- We lay out some similarities to the first impulse
- Is an ABC correction about to take place?
We will be using a hourly MATIC/BTC chart to analyse MATIC due to it still being a relatively new coin, and a daily chart will not provide enough data to do proper analysis.
If we take a few steps back and look at the first impulse wave from the 10th of May, we can see the similarities to the entire wave on the bigger picture. It had its first impulse wave reaching the highs of 130 and afterwards fell down to the 50% retracement level. When it only managed to retrace 50%, it was a good indication of the bullishness that was about to follow. What first appeared to be the complacency wave and a ABC correction, turned out to be part of wave 3 in the bigger picture and continued much higher.
MATIC/BTC chart provided by Tradingview
MATIC/BTC chart provided by Tradingview
Now if we go back to the current date, we have to lay out the same scenario. This could be the complacency wave, which means we are currently in the ABC correction phase and is on the way to 200, but if we manage to hold above 350 we can expect this bull to continue running.
Some signs that MATIC will complete the ABC correction is the fact that all Fib extensions from the first impulse wave has been reached, indicating that we won’t see new highs before we first complete this retrace. On RSI we can see that it failed to break above 70 again, making us lean more to the bearish side. For now the ABC correction seems more likely, but the chance for more upside is till there.
Can MATIC hold these levels and continue its run, or is the ABC correction needed before we can have more upside? Let us know what you think in the comments below!
Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.