After the mayor had a big crash following the FTX crash, the overall market was sideways and had small rallies. Recognizing and observing the medium market situation, onchain signals and the direction of sharks, Holdstation has found a way to profit from $MATIC. Let's find out through this article!
General market situation
The market after the crash of FTX is waiting for BTC to return to the support bottoms around 12k, 10k or even 9k. However, it seems that the price of BTC is going in a very uncomfortable way, causing the majority of investors to lose. With the current situation when BTC is constantly sideway in the range of 15k5 to 17k, individuals write reviews that the market is waiting for a rally of BTC to maybe 17k-18k in the near future.
In fact, to create a standard uptrend season, the price of coins must go through a long enough accumulation period plus strong enough bottom tests to prove the market to be able to go up. At the moment BTC is doing exactly the same thing. The individual writer still holds the opinion for a new bottom test scenario of BTC in the period from mid-December to early 2023, then sideways to prepare for a new uptrend season.
The sharks will want to make big enough pullbacks to knock out all of the retail investors before opening a big round. The current process is on the sideline. With a short-term perspective, the writer is expecting BTC to have a rally before pulling back to lower price zones.
Onchain Status of $MATIC
More than 10 days ago, 230 million MATIC tokens were unstake, of which about 79 million tokens were transferred to a wallet tagged Token Millionaire on Nansen's data.
It is worth noting here that right after receiving 79 million MATIC from the stake pool, 43 million MATIC in this wallet was transferred to a wallet address 0x7Ab33AD1E91dDF6d5edf69a79D5d97a9c49015D4 and this address then transferred all 43 million MATIC to the Binance exchange. . And currently there are still around 36 million MATIC tokens that will most likely come under selling pressure if the Token Millionaire tagged wallet address continues to do the same.
Regarding the price trend, in the weekly chart, the price of $MATIC is touching the weekly trendline, the possible scenario could be a recovery back to the $1 mark for $MATIC when it touches the weekly trendline and bounces up to the MA50 line and falls.
In the medium term and beyond, the writer believes that the price of $MATIC will have a decrease of $0.5-$0.6 to shake off retail investors and prepare for the new uptrend season. Trading theory always has a general formula that when the underlying coins are in good health in terms of potential and application, there will be bottom tests deep enough to bounce back and be strong. History has also recorded that the price of $BTC has also had such times when in 2019 the price of BTC was at a peak of about 14k, fell to 3k and then plummeted to nearly 70k in 2021.
How to profit from the price line of $MATIC
At the time of writing, the price of $MATIC is trading around $0.85, investors can consider buying spot $MATIC around $0.8-$0.82 and holding it up to $1 (can be combined with considering taking profit when the price is priced). touches the weekly MA50) stop loss when MATIC penetrates $0.75. In this spot strategy, investors only use less than 10% of their capital because the current macro nature is not too beautiful for the coins to grow strongly, we are just expecting a recovery before the next one. big swing of $MATIC.
The second stage after $MATIC has touched the MA50 price line, investors can consider allocating 1-2% of capital to open a short position for $MATIC. And will use 8% more capital when the price of MATIC shows broken trendline weekly. To be sure and detect early whether the price of $MATIC has broken the weekly trend line or not, investors can look at the D3 frame for earlier confirmation. In a derivatives trading strategy using leverage, investors should only use up to x3 leverage to ensure capital.
Note that if phase 2 takes place without a recovery span of $MATIC, investors should only enter orders when the price line turns to retest the trendline.
Disclaimer:
The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
Holdstation is not responsible for any direct or indirect losses arising from the use of this article content.
