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Polygon, Fantom poised for significant price action

The central theses

  • MATIC is up more than 13% over the weekend.
  • Meanwhile, FTM is down about 4.4%.
  • Both tokens seem to continue trending in opposite directions.

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Polygon’s MATIC and Fantom’s FTM showed a negative correlation coefficient over the weekend. The former seems in need of higher highs, while the latter could be on the verge of a steep correction.

Polygon and Fantom ready for volatility

Volatility has hit the cryptocurrency market and altcoins like MATIC and FTM appear poised for significant price moves.

MATIC enjoyed impressive bullish momentum, up almost 13% since the start of Saturday’s trading session. The rebound allowed it to break out of an ascending triangle that was developing on its four-hour chart in late July. Further buying pressure could help Polygon enter a 27% uptrend towards $1.25 based on the height of the pattern’s Y-axis.

Nevertheless, the Tom DeMark (TD) Sequential indicator showed a sell signal within the same timeframe. The bearish formation developed as a green nine-candle, suggesting a correction of one to four candles. An increase in profit taking could lead to a dip to $0.98 or $0.95 before the uptrend resumes.

Polygon US Dollar Price Chart
MATIC/USD four hour chart. (Source: TradingView)

Unlike MATIC, Fantom has seen a 4.4% correction since the start of Saturday’s trading session. The decline was caused by a rejection from the upper trend line of an ascending wedge developing on the FTM four hour chart. This consolidation pattern will prevail as prices close below the lower trendline at $0.38, a 17.5% slide to $0.32 imminent.

Fantom US Dollar price chart
FTM/USD four hour chart. (Source: TradingView)

It is worth noting that Fantom would need to close well above $0.42 to invalidate the bearish outlook. The break of this resistance barrier could be seen as a sign of strength, encouraging offside traders to re-open long positions, triggering a breakout to $0.49 or even $0.53.

Disclosure: At the time of writing this article, the author of this article owned BTC and ETH.

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