Polygon Breaks Out Targeting New Record Highs

Polygon Breaks Out Targeting New Record Highs

Key Takeaways

  • Polygon’s MATIC token has risen by greater than 22% within the final 4 days.
  • The sudden upswing has allowed the token to interrupt by means of resistance.
  • Further shopping for strain might push MATIC to $2.80.

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Polygon’s native token, MATIC, seems to be catching up with the remainder of the market after slicing by means of stiff resistance. Now, technical indicators and on-chain metrics recommend that costs might quickly attain a brand new all-time excessive. 

Polygon Commences Rally

Polygon has overcome its important resistance obstacles and now appears primed for brand new all-time highs. 

MATIC has loved bullish momentum within the final 4 days, rising by greater than 22% in market worth. Prices have elevated from a low of $1.52 on Oct. 23 to a latest excessive of $1.86.   

The sudden upward strain seems to have derived from the breakout of a symmetrical triangle. As costs have made a collection of decrease highs and better lows since Apr. 26, the consolidation sample developed on MATIC’s day by day chart. Breaching the triangle’s higher trendline at $1.62 on Oct. 23 might have resulted within the resumption of the uptrend. 

The top of the triangle’s y-axis added to the breakout level means that Polygon might be certain for a virtually 86% bull rally. Therefore, additional shopping for strain across the present value ranges might push MATIC to a brand new all-time excessive at $2.80.

Source: TradingView

While the percentages seem to favor the bulls, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) mannequin exhibits no opposition forward. The solely appreciable curiosity space sits on the $2 mark, the place 1,280 addresses have bought greater than 35.5 million MATIC. 

Traders who’ve been underwater could try to interrupt even on their lengthy positions as Polygon approaches the $2 mark. The potential improve in promoting strain might decelerate the uptrend, stopping MATIC from slice by means of this barrier and attaining its upside potential. 

MATIC Transaction History
Source: IntoTheBlock

The IOMAP additionally exhibits that probably the most important help stage beneath Polygon sits at $1.75. This help stage might maintain costs from dipping additional within the occasion of a spike in profit-taking. If it did break, the demand wall at $1.62 would seemingly maintain and permit costs to rebound. 

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