- Summary:
- MATIC, the multichain aggregator protocol built on Ethereum, is reporting the same trading volumes as Ethereum. How can it impact Matic Coin?
MATIC, the multichain aggregator protocol built on Ethereum, is reporting equal trading volumes as to its mother blockchain network, Ethereum.
Matic, the high-speed and gas-less alternative cryptocurrency and technology, certainly attract high interest from developers and users, which may be seen as a valid reason to expect further gains in the Matic coin price.
However, before jumping to conclusions, the charts tell us a different story – at least in the short and medium-term.
MATIC Coin Price Goes for Running Flat Variation?
In just a few days, the Matic vs the Dollar pair has seen a drop from its all-time high of $2.7 down to $0.74.
The structure down in (A) and the nearly equidistant retracement seen in (B) hint at a flat pattern correction as the latter corrected over 90% of the former. As a 335 pattern and with waves (A)(B) completed, we can now expect wave (C) to end in a 5-wave fashion. The question is where to?
Looking at the length of 1 and 3 of (C) suggests that this is likely the running rather than the expanding variation of irregular flats. This means that wave 5 could end near the 0.236 retracement of (A) at $1 as an expanding ending diagonal. Without wave 4 completed, however, a short-term upside can be well expected.
Matic Coin, 1hr Chart
What Could Confirm an Alternative Structure?
Should prices break past $1, and preferably the low at $0.74, we could expect to see the expanding flat variation. This could bring the Matic coin price further down, with a potential double-four forming at the $0.25-$0.30 zone, where buyers have shown high interest in the past.
However, if prices break past $2.3, the main scenario analysed above will most likely be invalidated.
Thereafter, traders can expect one of two alternatives to take place. The first one will see the correction in ④ being a (W)(X)(Y) double zigzag. This would suggest that the previous low is likely to be revisited as waves y of double zigzags often reach wave w or extend 0.786 of wx.
Otherwise, traders can expect the trend to continue higher and most likely without reaching a fresh local low (low opacity red waves). This alternative will see the correction in ④ finished at the $0.74 low and a bullish impulse that can be expected to reach double-digit highs in the long term.
Matic Coin, 1hr Chart
Thinking forward, don’t forget that correcting in wave ④ means we still expect prices to register a fresh high, once of course, the correction is confirmed complete.
For more details, on this Matic coin price forecast see this video.