According to price action, US employment figures sabotage Polygon's attempt to break out of the pennant.
Price expected to retest the 55-day SMA
One should expect more losses to be eked out, still concerning the pennant, to about $0.75. Bulls are running from the scene in Polygon (1) pricing movement as the US dollar once more soars. Since the dollar appears to be the sole large winner this fiscal year, many assets are depreciating. By the end of this year, the strong dollar may have burnt up another billion dollars worth of cryptocurrency market capitalization.
Could they run out of buyers?
Investors expected the Polygon price movement to end the week with a boom of 13% gains. Commodities are hanging by a thread, bonds are being sold like hotcakes, and the higher dollar is battering cryptocurrencies as equity investors flee the scene. The price movement of MATIC is expected to eliminate 3% of its 13% gains now and the remainder before the end of the US trading session. As a result, MATIC price will continue to trade inside the parameters of the pennant price pattern on the charts and appears destined to fall below the 55-day SMA (Simple moving average), making it challenging for bulls to attempt another drive for a positive breakthrough.
If bulls are prepared to defend, look for a dip back around $0.75 in a downward test of the pennant. Another run lower will result in the MATIC price printing at $0.70 or lower if bulls are unwilling to take on the mighty dollar. However, if the 55-day SMA continues to hold and survive the selling pressure, bears may be set up to be trapped, and bulls may take advantage of that as leverage to compel an upside squeeze. Then, if a bullish breakout from the pennant occurs, MATIC may print at $0.886. Even before a decline and pullback below the 200-day SMA manifest, a false break at $0.90 may be in the cards.