Here’s what market makers have in store for the MATIC price
- MATIC price established another equal high at $0.595 on its way to collect liquidity above an existing equal high at $0.626.
- This development could suggest momentum is waning, but it remains to be seen what market makers might do next.
- A four-hour candlestick close below $0.477 will invalidate the bullish thesis.
MATIC price has shown an incredible recovery over the past three weeks. The rebound from the recent pullback suggests that the bullish momentum is back. However, things could go awry with potential cash sweeps followed by a reversal.
Price MATIC and testing its limits
MATIC price fell 33% after its 100% rally that was triggered on June 18. This pullback appeared after the altcoin hit three equal highs at around $0.626. The correction stabilized around the $0.477 support level as Polygon bulls moved above.
So far, market makers or smart money have driven the price of MATIC up 43% in hopes of collecting the buy stop liquidity from above $0.626. However, this surge appears to be facing temporary resistance at $0.595, leading to another equal high.
While market makers have much more incentive to push the MATIC price higher, a reversal after the liquidity gathering could be in place. Additionally, the equal highs formed around $0.595 can be seen as a double top formation that signals the end of an uptrend.
Either way, the rise in the MATIC price is capped around the $0.626 level. Only a four-hour candlestick close that turns this hurdle into a support level will allow the altcoin to retest the long-term resistance barrier at $0.686.
MATIC/USDT 4 hour chart
On the other hand, if the MATIC price produces a four-hour candle near the $0.477 support level, it will turn it into a resistance barrier and invalidate the bullish thesis.
In such a case, the MATIC price might drop 20% to revisit the weekly support level at $0.381.