Polygon Price Prediction: Analyzing the Potential Breakout
A massive breakout from the triangle pattern suggests that MATIC price may extend the current recovery phase. The altcoin has been hovering above the $0.5 psychological support for the last two months, attempting to regain its bullish momentum. Amid this consolidation, a symmetrical triangle pattern has emerged, indicating a potential upward trajectory. The question remains: will this pattern build enough momentum to break above the $0.7 mark?
Factors Contributing to the Upward Momentum
- A high momentum breakout from the triangle pattern sets the prices for a 16% surge.
- A potential bullish crossover between the 20-and-50-day EMA slope.
- The intraday trading volume of the MATIC coin is $498 Million, showing a 57% gain.
Over a five-day bull run, the Polygon coin price leaped from $0.5025 to its current trading value of $0.61, marking a 22% surge. This notable upswing allowed market participants to escape a two-month-long correction, as the prices gave a decisive breakout from the symmetrical triangle formation on October 22.
The breakout candle closing above the resistance trendline indicates buyers with suitable footing to lead further price rally. Coinglass data further supports this bullish outlook, revealing a significant amount of short liquidations in the past four days, including $1.1 million worth today, alongside $258.29k in long liquidations. Thus, short holdings exiting the market pour more buying orders, intensifying the bullish momentum.
If the bullish momentum persists, the MATIC price currently trading at $0.06 could witness a 15% jump to hit the $0.07 psychological barrier.
Assessing the Sustainability of the Current Recovery
While the short-term projection seems bullish, it’s crucial to note that the MATIC price faces overhead supply around the $0.64 price point. Today’s candle shows a long-wick rejection, suggesting a minor 3% pullback may be imminent to retest the previously breached trendline. This retest will serve as a validation point, determining whether the asset’s rally is genuinely sustainable or merely a false breakout.
Technical Indicators Supporting the Bullish Outlook
- Exponential Moving Average: A price jump above the daily EMAs(20, 50, and 100) slope provides an additional edge to market buyers.
- Average Directional Index: A bullish upswing in the daily ADX slope reflects the buyers’ hold sufficient strength to lead further rally.
