The price of Polygon (MATIC) is expected to rise significantly due to a bullish breakout from a falling wedge pattern, coupled with a healthy retracement. This sets the stage for a strong rally in MATIC’s price.
On Monday, Polygon’s cryptocurrency, MATIC, surged as the overall market improved. With Bitcoin surpassing $70,000, MATIC quickly recovered, allowing buyers to regain lost ground. As a result, Polygon’s price surged by 7%, breaking through the key resistance level from the previous correction trend after rebounding from a 50% retracement level.
Polygon Price Correction and Potential Bullish Outlook
The recent correction trend in Polygon’s price can be observed through a falling wedge pattern on the 4-hour chart. This pattern’s resistance trendline led to a significant decline from the $1.29 high to $0.86, representing a 32.8% loss in value.
However, this correction reached a 50% retracement according to the Fibonacci tool, bringing the price back to $0.947. Amidst the broader market recovery, this price increase breached the resistance trendline of the wedge pattern, signaling the potential end of the correction.
Renowned Trader’s Analysis and Bullish Indicators
In his latest analysis, well-known trader Alichart has highlighted Polygon’s MATIC, pointing towards a potentially bullish future. A key indicator he considers is the 30-day Market Value to Realized Value (MVRV) ratio.
The 30-day MVRV shows $MATIC is in the buy zone! Historically, the last two entries into this zone saw #MATIC surge by 112% and 87%. This is a pattern in #Polygon trend worth watching! pic.twitter.com/tICtvdLZ0d
— Ali (@ali_charts) April 7, 2024
Polygon Price Analysis and Technical Indicators
Currently, the MVRV ratio sits below 1, historically suggesting that the asset might be undervalued and potentially in a buy zone. This observation holds significance as past instances of similar MVRV levels have been followed by impressive price upticks for MATIC—once by 112% and another by 87%.
Should the Polygon price maintain its breakout momentum, buyers could potentially drive a rally towards $1.08, followed by $1.30.
Technical Indicators
The uptick in the upper boundary of the Bollinger Band indicator indicates actively bullish momentum on an intraday basis. Additionally, a bullish upswing in both the MACD (blue) and signal (blue) lines suggests a shift in market sentiment towards bullishness. This indicates that market participants are increasingly adopting a positive outlook.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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