Polygon (MATIC) Presents Swing Trade Opportunity in Uptrend
According to a technical analysis by altFINS, Polygon (MATIC) is currently in an uptrend with a bullish near-term outlook. The token recently broke out from a Sideways Channel pattern, with resistance at $1.05 and support at $0.75, and has since resumed its uptrend.
Following the breakout, MATIC reached a resistance level of $1.25, where it faced rejection. However, altFINS suggests that a pullback to the $0.92 support level could present a swing trade entry opportunity within the uptrend, offering a potential 25% upside back to the $1.25 level in the near term. The recommended stop loss (SL) level for this trade setup is $0.84.
In terms of momentum, MATIC is currently bearish, with the MACD line below the MACD signal line and the RSI below 45. The nearest support zones for MATIC are $1.00–$1.05 (which it has broken), followed by $0.92 and $0.75. The nearest resistance zones are $1.25 and $1.50.
Polkadot (DOT) Shows Potential for 25% Upside on Pullbacks
Polkadot (DOT) has also been displaying bullish patterns and an overall uptrend, according to altFINS’ technical analysis. The token recently broke out from a falling wedge pattern, a bullish formation, and has since resumed its uptrend.
DOT reached a resistance level of $12, where it faced rejection. However, altFINS suggests that pullbacks near the $8 support level could present an attractive swing trade entry opportunity within the uptrend. This setup offers a potential 25% upside back to the $10 level, and if broken, possibly even to $12 thereafter. The recommended stop loss (SL) level for this trade is $7.20.
Polkadot’s momentum is currently mixed, with the MACD line below the MACD signal line (bearish) but the RSI around 50 (neutral). The nearest support zone for DOT is $8.00, followed by $6.50, while the nearest resistance zones are $10.00 and $12.00.
Conclusion
Both Polygon (MATIC) and Polkadot (DOT) have been showing strong technical indicators and patterns, suggesting the potential for further price appreciation in the near term. While MATIC has broken out from a sideways channel and resumed its uptrend, DOT has broken out from a falling wedge pattern and is also in an uptrend.
Traders and investors may find attractive swing trade entry opportunities on pullbacks to key support levels, with the potential for significant upside. However, it is crucial to keep in mind that the cryptocurrency market is highly volatile, and proper risk management techniques, such as setting appropriate stop loss levels, should always be employed.
As with any investment, thorough research and due diligence are essential before making any trading decisions. Although technical analysis offers significant insights, a comprehensive trading strategy necessitates its combination with fundamental analysis and risk assessment.
