- MATIC price rallied with the altcoin populace but faced resistance to its upswing.
- Polygon might retrace to $1.38 or the recent swing low at $1.28 before kick-starting an uptrend.
- A decisive close below $1.09 will invalidate the bullish outlook invoke a bearish thesis.
MATIC price experienced a minor upswing on Wednesday but failed to entice the sidelined investors to jump on board. Additionally, Polygon did not retest a crucial supply barrier during this uptrend, which could indicate that a minor retracement seems likely.
This retracement could set the for an uptrend that slashes through immediate resistance levels.
MATIC price prepares for a bullish onslaught
MATIC price rallied nearly 20% after it dipped below the 62% Fibonacci retracement level at $1.382. However, this upswing failed to retest the 50% Fibonacci retracement level at $1.59, suggesting that the buyers did not have their backs into the rally.
Therefore, a likely scenario that will play out shortly is a minor pullback that retests the 62% Fibonacci retracement level at $1.382 or the recent swing low at $1.28.
This move will set the stage for an upswing that might shatter through $1.59 and rally toward the first swing high at $1.76.
If the buyers continue to persist, MATIC price could climb to $1.85, roughly a 25% surge from the current position, $1.48.
Investors should note that the swing points at $1.96 and $2.02 are the next target for the bulls if the bid orders continue to pile up.
MATIC/USD 4-hour chart
If the buyers fail to come back at $1.27 or get rejected at $1.59, resulting in a breakdown of $1.24, it will signify an increased selling activity and the inability of the bulls.
A decisive 4-hour candlestick close below $1.09 will invalidate the bullish thesis and open up the possibility for MATIC price to move to the range low at $0.74.