MATIC breaks resistance!

4 Feb 2022

MATIC made a clear move above the resistance when it breached $1.61, confirming a recovery in the short-term. I believe this recovery will continue as its two paths forward are both bullish, with targets that will break through the upper trend line of the ascending (consolidating) channel in GREEN. The target will depend upon whether the price follows the C&H pattern in PURPLE...or fails at $1.68, dropping back to 1.56ish to form an Inverse H&S in ORANGE (projection). **note that the potential targets of $1.88 and $2.03 could vary slightly because of where I measured the bottom, finding a reasonable area higher than the wick that corresponded to an average of equal support levels from Jan. 25. BTC broke 40k and is leaning positive for continuation, but who knows? A lot of investors are trying to cover their butts right now and the immediate time frames show an oversold RSI while the daily is still excellent. I will be watching for BTC to slip below $40,200. A dip from $40,500 to this level could be the relationship between creating the Handle on MATIC's Cup, and a drop below $40,200 may be what would lead to MATIC forming a right shoulder around $1.56. Either way, the market is heading higher due to the liquidation of shorts on BTC. This is not financial advice.