Polygon (MATIC) Breakout Could Propel Price To $1 In Days: Crypto Analyst
August 21 2024 - 7:30PM
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Polygon (MATIC) stands as one of the top performers in today’s
crypto market, ranking third among the top-100 cryptocurrencies by
market cap as of August 21. With a gain of 9% within the last 24
hours, the MATIC price recent surge is outpaced only by the Justin
Sun associated crypto assets, TRON (+12%) and BitTorrent (+22%).
Over the past week, MATIC has experienced a notable rally,
accumulating over a 23% increase in its value. This upswing has
positioned MATIC at a crucial juncture from a technical analysis
standpoint. Crypto analyst World of Charts (@WorldOfCharts1) has
pointed out via an analysis on X that Polygon has broken out of a
more than six-month long downtrend. The analyst predicts that MATIC
could potentially surge towards the $1 mark. Polygon (MATIC) Poised
For 143% Rally? The Polygon price has been caught in a descending
channel since mid-March, identified by two parallel
downward-sloping trend lines. This channel represents a
consolidation pattern typically observed as the price makes lower
highs and lower lows. Historically, a descending channel is bearish
in the context of a downtrend but can indicate a reversal if a
breakout occurs. Related Reading: MATIC Price (Polygon) Sets Sights
Higher: Can It Gain Bullish Momentum? Yesterday, on August 20, the
Polygon price broke out from this descending channel, which can be
considered a major bullish signal, suggesting a potential end to
the previous downtrend. The breakout move by MATIC is crucial
because it not only represents a shift in market sentiment but also
sets a new trajectory for potential price targets. The breakout
point is situated at approximately $0.44. Following the breakout,
the price is projected to rise by more than 143%, according to the
analyst. A price rally of this magnitude would push the MATIC price
above $1.10. “Matic testing crucial area breakout can lead massive
recovery towards 1$ in coming days,” World of Charts remarked via
X. Critically, the current price level, post-breakout, needs to
serve as a new support level. If MATIC maintains above the
descending trend line and ideally performs a successful retest, the
bullish outlook could be confirmed. Should the price drop below the
trend line again, it might be considered a false breakout,
potentially leading to a reassessment of the bullish scenario.
Related Reading: MATIC Set For Rebranding In Early September: Will
Polygon Prices Recover After Sinking 65%? Furthermore, investors
might want to monitor the trading volume and market sentiment. Both
will probably play critical roles in sustaining the current upward
momentum. An increase in trading volume typically accompanies
genuine breakouts, providing further confirmation. A catalyst for
another Polygon Rally is just around the corner. As announced in
mid-July, Polygon will complete the migration from MATIC to POL on
September 4. POL is an eagerly awaited upgrade, primarily due to
its role in enhancing the functionality of Polygon’s native token.
Upon its implementation, POL will serve immediate practical
purposes within the existing Polygon Proof-of-Stake (PoS) network.
It will become the principal gas and staking token of Polygon PoS,
playing a crucial role in the security framework of the Polygon
network. At press time, MATIC traded at $0.4775. Featured image
created with DALL.E, chart from TradingView.com
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