Polygon (MATIC) stands as one of many high performers in at this time’s crypto market, rating third among the many top-100 cryptocurrencies by market cap as of August 21. With a achieve of 9% inside the final 24 hours, the MATIC worth current surge is outpaced solely by the Justin Solar related crypto property, 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 an important juncture from a technical evaluation standpoint. Crypto analyst World of Charts (@WorldOfCharts1) has identified by way of an analysis on X that Polygon has damaged out of a greater than six-month lengthy downtrend. The analyst predicts that MATIC might probably surge in direction of the $1 mark.
Polygon (MATIC) Poised For 143% Rally?
The Polygon worth has been caught in a descending channel since mid-March, recognized by two parallel downward-sloping pattern 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 worth broke out from this descending channel, which may 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 additionally units a brand new trajectory for potential worth targets.
The breakout level is located at roughly $0.44. Following the breakout, the value is projected to rise by greater than 143%, based on the analyst. A worth rally of this magnitude would push the MATIC worth above $1.10. “Matic testing essential space breakout can lead large restoration in direction of 1$ in coming days,” World of Charts remarked by way of X.
Critically, the present worth stage, post-breakout, must function a brand new help stage. If MATIC maintains above the descending pattern line and ideally performs a profitable retest, the bullish outlook could possibly be confirmed. Ought to the value drop beneath the pattern line once more, it may be thought-about a false breakout, probably resulting in a reassessment of the bullish state of affairs.
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Moreover, traders may need to monitor the buying and selling quantity and market sentiment. Each will in all probability play vital 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 announced in mid-July, Polygon will full the migration from MATIC to POL on September 4.
POL is an eagerly awaited improve, primarily on account of its function in enhancing the performance of Polygon’s native token. Upon its implementation, POL will serve quick sensible functions inside the present Polygon Proof-of-Stake (PoS) community. It can turn into the principal gasoline and staking token of Polygon PoS, enjoying an important 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
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