Correlations work until they don’t. And, as I mentioned a couple of weeks ago, crypto’s years-long correlation to equities no longer works.
The easy money, risk-on link has broken down. And crypto now marches to the beat of its own drum.
There are several catalysts bearing down on crypto markets right now, including the CBDC discussions going on in the congressional hearing today with Jerome Powell.
I discussed another one in a recent presentation.
But despite the fundamental backdrop nudging prices over the long-term, I rely heavily on technical analysis to see what’s moving where now.
And that analysis points to an opportunity in MATIC.
After peaking back in February, it has pulled-back to a 61.8% fibonacci level. This level also coincides with my Roadmap line, yielding a confluence of support.
A move up above the $1.30 level from here is a potential entry with a target in the $2.10 area for a potential 61% return. But you’ll want to make sure to wait for the $1.30 level because the whole pattern breaks down should MATIC trade down to $0.75.
