Was the surge on Tuesday the start of a rally in Matic?
Polygon Network (MATIC/USD) was trading over 8% higher as huge buying volumes were seen on Tuesday. Matic is an Ethereum protocol that aims “to create, issue, and manage digital securities on the blockchain.” By creating a compliance-focused standard (ST-20) to issue and manage security tokens, Polymath seeks to “tokenize and trade traditional and new classes of assets.”Matic had been correcting after a sharp rally in the past week and it is looking like the rally might be over and that Matic could soon head for a new all-time high.
Matic rallied by over 50% in under a month earlier in December and it has been since falling this year which could be a correction after the sharp rally. Matic has often rallied sharply after a correction, a small correction was also seen before the rally in December. Matic is also approaching a strong support level which was the zone from which the previous rally began. It is looking like the surge on Tuesday was the start of the rally and thus Matic could soon hit a new all-time high, moreover, Matic also broke out from a trendline on Tuesday showing that the bulls are back in Matic. Thus should you buy Matic in hopes of a new all-time high soon?
Here is what the charts are pointing towards-
Matic had been trading in a sharp downtrend in the past week, however, it has finally broken out from a strong resistance and can soon start rallying further.
Investors can wait for a retest of the trendline before taking a long entry, as an early entry could be risky due to the chances of a false breakout.
Investors can set a target at $2.7, followed by a new all-time high however a stop-loss should be maintained at $1.8.