Polygon Price Prediction: A Bullish Breakout
A bullish breakout from $0.95 resistance sets the MATIC price for a further rally, raising the question of whether it’s the right time to enter the market.
Polygon Resilience Amid Market Uncertainty
MATIC, the native token of layer 2 solution Polygon, has shown strong resilience to current market uncertainty and successfully reclaimed the key psychological level of $1. The asset has experienced an aggressive rally for nearly a month, breaching the critical resistance of $0.9458 this week. However, the waning bullish momentum in BTC may pose significant hurdles.
Factors Influencing a Potential 30% Surge
- A symmetrical triangle pattern leading to a long-term sideways trend in MATIC.
- Overhead supply challenges at $1.09 and $1.3.
- The $0.5 psychological level acting as a strong support zone for crypto buyers.
- Intraday trading volume for MATIC at $275.9 million, showing a 9.56% gain.
The MATIC coin entered an active recovery trendline in late January when the price rebounded from $0.722. This V-shaped recovery is often seen as a sign of aggressive buyer activity.
Within a month, the Polygon price surged nearly 40% to reach the recovery trading price of $1.01. Buyers have pierced through the combined resistance of $0.945 and the 61.8% Fibonacci retracement level of the last correction.
This resistance turning to support is the next key foothold for buyers to prolong the recovery trendline. However, MATIC buyers must hold this flipped support while enduring the selling pressure from Bitcoin.
Insights from Renowned Trader Analyst Ali
The trader analyst Ali from @ali_charts reported a substantial move in the Bitcoin market, with whales selling over 30,000 BTC, totaling around $1.56 billion, within just 48 hours. This notable activity may indicate a shift in sentiment among significant investors and could impact BTC’s near-term move.
Thus, the sustainability of Polygon’s price above the $0.945 support is crucial to propel a potential rally of 30% to hit $1.3.
Long-Term Analysis and Chart Patterns
While the current market momentum shows a positive outcome for the Polygon coin, an analysis of a longer time frame chart reveals an alternate possibility. A potential rally to $1.3 will also challenge the neckline resistance of the symmetrical triangle pattern, active for nearly two years. A breakout above this resistance is needed to trigger a bullish trend.
Technical Indicators
- Exponential Moving Average: The fast-moving 20-day EMA is providing buyers with dynamic support to maintain sustainable growth.
- Average Directional Index: The ADX slope uptick at 24% reflects that buyers have sufficient momentum to extend the current recovery.
