Will Polygon Price Sustain Above $1?
MATIC, the native cryptocurrency of Layer 2 solution Polygon, has recently surpassed the $1 mark as the market recovers. In just one week, the coin’s price has increased by 16.68%, going from $0.92 to $1.067. With this bullish momentum, the polygon price is approaching a potential breakout from its key resistance level at $1.09. The question is, should you consider entering this breakout?
The Rebound of Polygon Price
Polygon’s coin experienced a correction in late January when it rebounded from the $0.71 support level. This V-shaped recovery, accompanied by increasing volume, indicated sustainable growth and pushed the price up by 46% to reach $1.
During the same period, Polygon Futures Open Interest saw a significant increase of 117%, rising from $202.1 million to $438.68 million. This growth in interest and adoption of the network among market participants is a positive sign for the asset.
A Symmetrical Triangle Pattern
When analyzing the daily chart, it becomes apparent that Polygon’s price has been following a symmetrical triangle pattern for almost two years. This pattern suggests a sideways trend for the altcoin.
However, under the influence of this pattern, the current recovery should lead the Polygon price towards the overhead resistance trendline, indicating a potential growth of 25%. It’s important to note that a breakout above this triangle pattern would provide further confirmation of recovery.
Whale Movement Impact
Recently, Whale Alert reported a significant transfer of 13,094,113 MATIC (approximately $13.6 million) from an unidentified wallet to Binance. Large movements like this to exchanges often precede selling pressure or strategic positioning by major holders, which could impact MATIC’s market dynamics.
Factors to Consider
When deciding whether to enter the breakout above $1, it’s important to consider the following factors:
- Exponential Moving Average (EMA): The fast-moving 20-day EMA can provide suitable support for maintaining the recovery trend.
- Vortex Indicator: A bullish crossover between the VI+ and VI- indicates that buyers are currently dominating this asset.
Hot Take: Should You Enter the Breakout?
Considering the recent rebound in price, Polygon’s strong recovery trend, and the potential for a breakout from the symmetrical triangle pattern, entering the breakout above $1 could be a favorable move. However, it’s important to keep an eye on any potential supply pressure at the overhead trendline and monitor how market dynamics unfold following the whale movement to Binance.
Ultimately, as with any investment decision, it’s crucial to conduct your own research, assess your risk tolerance, and make an informed choice based on your individual financial goals and circumstances.
By
By
By
By
By