Polygon (MATIC) is among the high performers within the cryptocurrency market as we speak, rating third among the many high 100 cryptocurrencies by market capitalization as of August 21. That is adopted by Justin Solar-related crypto belongings TRON (+12%) and BitTorrent (+22%).
MATIC has skilled important positive factors over the previous week, accumulating over 23% of its worth. From a technical evaluation perspective, this rise places MATIC at a important juncture. Cryptocurrency analyst World of Charts (@WorldOfCharts1) identified by way of evaluation of X that Polygon has damaged out of a long-term downward pattern of greater than six months. Analysts predict that MATIC might surge to the $1 mark.
Polygon (MATIC) Poised to Rise 143%?
Since mid-March, Polygon value has been trapped in a descending channel, marked by two parallel downward-sloping pattern strains. The channel represents a consolidation sample that’s usually noticed when value varieties decrease highs and decrease lows. Traditionally, descending channels are bearish in downtrends, but when a breakout happens, it might sign a reversal.
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Yesterday, August 20, Polygon value broke out of this descending channel, which might be thought-about a serious bullish sign that the earlier downtrend could also be coming to an finish. A MATIC breakout is important as a result of it not solely represents a shift in market sentiment, but additionally units a brand new trajectory for potential value targets.
The breakout level is round $0.44. Analysts stated that after the breakout, costs are anticipated to rise by greater than 143%. A value improve of this magnitude would push MATIC value above $1.10. World of Charts commented through
Crucially, the present value stage following the breakout must act as new assist. The bullish outlook might be confirmed if MATIC sustains above the downtrend line and ideally efficiently retests it. If the value falls beneath the trendline once more, it might be thought-about a false breakout, presumably resulting in a re-evaluation of the bullish state of affairs.
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Moreover, buyers could need to monitor buying and selling quantity and market sentiment. Each are more likely to play a key function in sustaining the present upward momentum. A rise in buying and selling quantity usually accompanies a real breakout, offering additional affirmation.
The 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 4th.
POL is a extremely anticipated improve, primarily attributable to its function in enhancing the performance of Polygon’s native token. As soon as applied, POL will probably be instantly useful inside the present Polygon Proof-of-Stake (PoS) community. It’ll develop into the primary fuel and staking token of Polygon PoS, taking part in an important function within the safety framework of the Polygon community.
At press time, MATIC was buying and selling at $0.4775.
Featured picture created utilizing DALL.E, chart from TradingView.com
