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.
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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.
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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%.
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Should the Polygon price maintain its breakout momentum, buyers could potentially drive a rally towards $1.08, followed by $1.30.
Also Read: Cardano Price Potential: Repeating 2021 Surge
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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