Polygon (MATIC) stands as one of many prime performers in in the present day’s crypto market, rating third among the many top-100 cryptocurrencies by market cap as of August 21. With a achieve of 9% throughout the final 24 hours, the MATIC value latest surge is outpaced solely by the Justin Solar related crypto belongings, TRON (+12%) and BitTorrent (+22%).
Over the previous week, MATIC has skilled a notable rally, accumulating over a 23% enhance in its worth. This upswing has positioned MATIC at a vital juncture from a technical evaluation standpoint. Crypto analyst World of Charts (@WorldOfCharts1) has identified through an evaluation on X that Polygon has damaged out of a greater than six-month lengthy downtrend. The analyst predicts that MATIC might doubtlessly surge in direction of the $1 mark.
Polygon (MATIC) Poised For 143% Rally?
The Polygon value has been caught in a descending channel since mid-March, recognized by two parallel downward-sloping development traces. This channel represents a consolidation sample sometimes noticed as the value makes decrease highs and decrease lows. Traditionally, a descending channel is bearish within the context of a downtrend however can point out a reversal if a breakout happens.
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Yesterday, on August 20, the Polygon value broke out from this descending channel, which could be thought-about a significant bullish sign, suggesting a possible finish to the earlier downtrend. The breakout transfer by MATIC is essential as a result of it not solely represents a shift in market sentiment but in addition units a brand new trajectory for potential value targets.
The breakout level is located at roughly $0.44. Following the breakout, the value is projected to rise by greater than 143%, in line with the analyst. A value rally of this magnitude would push the MATIC value above $1.10. “Matic testing essential space breakout can lead large restoration in direction of 1$ in coming days,” World of Charts remarked through X.
Critically, the present value degree, post-breakout, must function a brand new help degree. If MATIC maintains above the descending development line and ideally performs a profitable retest, the bullish outlook could possibly be confirmed. Ought to the value drop beneath the development line once more, it could be thought-about a false breakout, doubtlessly resulting in a reassessment of the bullish situation.
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Moreover, buyers may need to monitor the buying and selling quantity and market sentiment. Each will in all probability play important roles in sustaining the present upward momentum. A rise in buying and selling quantity sometimes accompanies real breakouts, offering additional affirmation.
A catalyst for an additional Polygon Rally is simply across the nook. As introduced in mid-July, Polygon will full the migration from MATIC to POL on September 4.
POL is an eagerly awaited improve, primarily as a result of its function in enhancing the performance of Polygon’s native token. Upon its implementation, POL will serve speedy sensible functions throughout the present Polygon Proof-of-Stake (PoS) community. It is going to grow to be the principal gasoline and staking token of Polygon PoS, taking part in a vital function within the safety framework of the Polygon community.
At press time, MATIC traded at $0.4775.
Featured picture created with DALL.E, chart from TradingView.com