key takeaways
- MATIC has risen over 13% over the weekend.
- Meanwhile, the FTM has retreated about 4.4%.
- Both the tokens are looking to continue the trend in the opposite direction.
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Polygon’s MATIC and Fantom’s FTM showed negative correlation coefficients over the weekend. The former appears to be bound for higher highs, while the latter could be about to enter a sharp correction.
Ready for Polygon and Phantom Instability
Volatility has hit the cryptocurrency market, and altcoins like MATIC and FTM are poised for significant price action.
MATIC has enjoyed impressive momentum with a gain of around 13% since the start of Saturday’s trading session. The upswing allowed it to break out of the ascending triangle it developed in its four-hour chart in late July. Further buying pressure could help it enter a 27% upward trend towards $1.25 based on the height of the Y-axis of the pattern.
Nevertheless, the Tom DeMark (TD) Sequential Indicator presented a sell signal within the same time frame. A bearish formation developed in the form of a green nine candlestick, which is indicating a one- to four-candlestick correction. A spike in profit-taking could result in a drop to $0.98 or $0.95 before the uptrend continues.
Unlike MATIC, Fantom has corrected 4.4% since the start of Saturday’s trading session. The downswing was caused by a rejection from an upper trendline of an ascending wedge developing on the four-hour chart of FTM. This consolidation pattern prevails if the price closes below the lower trendline at $0.38, a 17.5% drop to $0.32.
It is worth noting that Phantom would have to close above $0.42 decisively for the pessimistic outlook to be invalidated. A break above this resistance barrier can be seen as a sign of strength that encourages sidelined traders to reopen long positions, leading to a breakout to $0.49 or $0.53.
Disclosure: At the time of writing, the author of this article owns BTC and ETH.
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