Is Polygon -MATIC- Setting up For a Rally to $2s?

A New Bull Run Has Most Likely Started

For those who trade Polygon, aka MATIC, but are new to my work, please check my recent updates on Bitcoin (BTC) and Ethereum (ETH) –here and here, for example- to see the accuracy and reliability of my analyses. I primarily use the Elliott Wave Principle (EWP) in combination with technical analyses (TA) to determine the next likely moves and price targets for short- to the long-term.

Although this is my first public update on MATIC, I have been providing updates about it to my premium crypto members for a long time, and it is also featured in my algorithm-based crypto trading alerts service.

That said, Figure 1 below shows Polygon’s monthly candle stick chart, and the chart tells me that MATIC has most likely completed (Blue) Primary wave-IV. From the EWP, we know that wave-V must follow. As you can see, once MATIC broke below the critical $1.30 level, simple symmetry, Fibonacci-based retraces, and support levels told us to look for a low in the $0.40-0.60 region.

The cryptocurrency dropped in June to as low as $0.32 but closed that month at $0.48. Essentially exactly as expected two months prior. That is the power of the EWP and TA combined. A monthly close above the $1.3 level will confirm the presented EWP count. To suggest otherwise, MATIC will have to close below the July low of $0.44. With that in mind, it is prudent to understand the short-term price action.

Figure 1. Polygon monthly chart with detailed EWP count and technical indicators.

The June-August Rally Was an Impulse

Figure 2 below shows the shorter-term EWP count. The price action from the June low to the recent August high is best assessed as a five-wave impulse pattern. And from the EWP, we know that after five waves up (red wave-i comprises five smaller green waves), we must expect three waves lower (red wave-ii includes three smaller green waves so far) and another five waves up (red wave-iii).

Figure 2. Polygon daily chart with detailed EWP count and technical indicators.

The red boxes show the typical wave-ii Fibonacci-based retrace target zone, and MATIC already did the bare minimum this week. As such, the wave-ii correction can be complete. To be more certain of that, we need to see the cryptocurrency break above the $1.00 level (blue arrow). Then it can target $2+ per the (red) waves-iii, iv, and v.

Alternatively, since corrections are often complex price patterns, Polygon could stall at around $0.92+/-0.02 (green wave-b) and fall below $0.75 targeting~$0.60+/-0.02 (green wave-c): red arrows. Thus, short term, there’s still a little uncertainty over the exact path, but even a drop will present a new setup from which MATIC can rally strongly to fulfill the Bullish EWP setup found in figure 1.