Polygon (MATIC) has the potential to reach $ 3.50 later this year, since draws a pattern that begins to look like a bullish flag.
In detail, bullish flags are bullish continuation patterns that arise when the price consolidates after a strong bullish movement. In doing so, the price tends to decline as it leaves behind a sequence of higher lows and lower lows.
The upside occurs when the price closes above the flag’s upper trend line (or resistance). In other words, the price can rise as high as the height of the previous uptrend, also known as the flagpole.
It seems that MATIC has been painting a similar pattern even since it set an all-time high of $ 2.89 on May 17., after a bullish run of USD 2 (the flagpole).
As a result, if the MATIC price rises above the flag resistance decisively, it will shift its bullish target to about $ 2 above the breakout level. This would put the Polygon token on its way to $ 3.50.
Recoil angle
The bullish setup appeared when MATIC rose about 30% on Friday to hit a one-month high near $ 1.65.
However, the cryptocurrency experienced a slight correction near said high, dropping around 4% on profit-taking sentiment among daytraders. Also, since the correction occurred right around the resistance of the bullish flag, it increased the possibility of prolonged selling.
If a pullback occurs, there is a risk of MATIC falling to its first weekly support line towards its 20-week exponential moving average (20-week EMA; the green wave) around $ 1,231.. Meanwhile, further weakness could shift the bearish target to the 50-week EMA (the velvet wave) around $ 0.868.
The bears take the lead
In addition to the full flag, MATIC painted a cup and handle pattern that presented the possibility of the cryptocurrency reaching $ 1.80 soon.
The twitterer MK2 Trading detected the first bullish reversal indicator on the Polygon token daily price chart. It showed the price forming a rounded bottom (cup) after a bullish move and then painting a descending channel range (handle).
A subsequent breakout of the handle’s trading range would signal a bullish continuation. In doing so, the price could see a race towards the level in a length equal to the depth of the cup. Consequently, MK2 Trading expects MATIC to hit $ 1.80 in the upcoming sessions.
Macroeconomic fundamentals
The latest wave of Polygon market purchases came after Upbit, one of South Korea’s top cryptocurrency exchanges by volume, added MATIC pairs to its trading platform. Additionally, the exchange also listed Solana (SOL) and NuCypher (NU) pairs.
Solana was another of the most prominent cryptocurrencies on Friday: its native token, SOL was up more than 11.5%, while NuCypher’s NU was up more than 845% on Friday following Upbit’s announcement.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and commercial movement involves a risk. You should do your own research when making a decision.
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