Polygon, Phantom poised for significant price action

Important takeaways

  • MATIC has risen more than 13% over the weekend.
  • Meanwhile, FTM has retreated approximately 4.4%.
  • Both tokens seem to continue trending in opposite directions.

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Polygon’s MATIC and Fantom’s FTM have shown a negative correlation coefficient over the weekend. The former appears to be headed for higher highs, while the latter may be about to enter a steep correction.

Polygon and Phantom Ready for Volatility

Volatility has hit the cryptocurrency market, and altcoins like MATIC and FTM seem poised for significant price moves.

MATIC has enjoyed impressive bullish momentum, rising nearly 13% since the start of Saturday’s trading session. The rally allowed it to break out of an ascending triangle that developed on its four-hour chart in late July. Additional buying pressure could help Polygon enter a 27% uptrend toward $1.25 based on the height of the pattern’s Y axis.

Nevertheless, the Tom DeMark (TD) Sequential indicator presented a sell signal within the same time frame. The bearish formation developed as a green nine-candlestick, indicating a one-to-four candlestick correction. An increase in profit taking could result in a decline to $0.98 or $0.95 before the continuation of the uptrend.

MATIC/USD four-hour chart. (Source: TradingView)

Unlike MATIC, Fantom has undergone a 4.4% correction since the start of Saturday’s trading session. The decline was caused by a rejection from the upper trend line into a rising wedge that developed on the FTM four-hour chart. This consolidation pattern dictates that if prices close below the lower trendline of $0.38, a 17.5% decline to $0.32 becomes imminent.

Phantom US Dollar Price Chart
FTM/USD four-hour chart. (Source: TradingView)

It is worth noting that Fantom had to close decisively above $0.42 to invalidate the pessimistic outlook. Cutting through this resistance barrier can be seen as a sign of strength encouraging sideline traders to reopen long positions, triggering a breakout to $0.49 or even $0.53.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

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