MATIC price is up 35% from last week’s low and still in a long-term uptrend, but should buyers use force to reduce risk?
Polygon (MATIC) is down around 5% to $ 2,100 as of early trading on Monday. Despite the slight correction, the MATIC token has gained 45% over the past month and nearly 250% from July lows. But given the uncertainty surrounding the cryptocurrency market, now might be a great time to take money off the table and reassess MATIC’s medium-term potential.
The MATIC price has outperformed recently. Even after Bitcoin and Ethereum retreated from their all-time highs, Polygon was one of the few cryptos to continue to trade well. As a result, Polygon’s market cap is approaching $ 15 billion, which should allow it to overtake Shiba Inu to become the 13th most valuable crypto.
Polygon Price Prediction
Isolated, Polygon’s outlook appears constructive. However, my concerns are for the market as a whole. Bitcoin’s price action is slow and is expected to remain so for the foreseeable future. Additionally, due to the FOMC’s Hawkish taper schedule, broader macroeconomic conditions are deteriorating.
Subsequently, the tailwind for crypto prices fades. Additionally, trading conditions are likely volatile and illiquid during the holiday season. As a result, Polygon could experience some crazy price swings over the next two weeks. This is why, in my opinion, closing or scaling profitable trades until the end of the year is often a wise decision.
If the market goes down, a logical destination for the MATIC price is the 200-day moving average at $ 1.443, about 40% below the current price. Looking at BTC and Ethereum today, the chances of Polygon testing $ 1.443 over the next week are high. Additionally, further reduction in market risk could extend MATIC up to $ 1,000
Of course, cryptos often defy logic, and based on that, Polygon could continue to rise even if the market turns. Subsequently, a close above $ 2,500 invalidates my bearish view.
MATIC price table (daily)
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