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Crypto Watchlist: How High Can Polygon (MATIC) Fly?

November 8, 2022| Forex Market

Polygon (MATIC) just bumped Solana (SOL) from Cryptomarketcap’s top 10 projects by market capitalization!

How high will MATIC/USD fly?

I’m looking at the daily chart for clues.

MATIC/USD Daily Chart

MATIC/USD Daily Chart

In case you’ve been too busy recovering from your Halloween weekend, you should know that the Polygon network – formerly the Matic network – has been getting a lot of buzz from crypto HODLers.

And why not? Meta recently unveiled a toolkit that would use the Polygon network to allow its 2 billion Instagram users to mint and sell non-fungible tokens (NFTs).

In the same week, banking giant JPMorgan Chase & Co executed its first DeFi transaction while using the Polygon network.

This is likely why MATIC/USD jumped from its consolidation near .8000 and busted above the 1.0000 psychological handle to trade near the 1.2000 area.

But that was last week.

MATIC/USD is currently encountering resistance around 1.3000, which isn’t surprising since the level lines up with the 38.2% Fibonacci retracement level of 2022’s big downswing.

Not only that, but Stochastic is hinting of a bearish divergence as it shows lower highs while price is making higher highs.

How high can MATIC fly?

Unless we see more MATIC-specific headlines, MATIC/USD’s momentum might depend on overall risk sentiment.

Worries about high interest rates, big corporate layoffs, and global growth slowdown can drag MATIC/USD back below the 1.0000 mark.

But if risk-taking continues to prop major crypto tokens higher, then MATIC/USD could take cues from the 100 SMA crossing above the 200 SMA and push the pair to new monthly highs.

Watch the current consolidation closely, errbody!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.

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