Polygon can hit $3.50 in This autumn as MATIC’s 20% weekly rally triggers bull flag setup

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Polygon (MATIC) has the potential to achieve $3.50 by the tip of this 12 months because it charts a sample that is beginning to resemble a Bull Flag.

Intimately, Bull Flags are bullish continuation patterns that emerge when the worth consolidates following a robust transfer greater. In doing so, the worth tends to development decrease whereas forsaking a sequence of upper lows and decrease lows.

A breakout happens when the worth closes above the Flag’s higher trendline (or resistance). In different phrases, the worth can rise by as a lot as the peak of the earlier uptrend, also referred to as Flagpole.

So it seems MATIC has been portray an analogous sample even because it established a document excessive of $2.89 on Might 17, following a $2-long upside run (the Flagpole).

MATIC/USD weekly worth chart that includes bull flag setup. Supply: TradingView.com

Because of this, ought to the MATIC worth break above the Flag’s resistance decisively, it should shift its upside goal to about $2 above the breakout degree. That may roughly put the Polygon token en path to $3.50.

The pullback angle

The bullish setup appeared as MATIC surged by round 30% on Friday to achieve a one-month excessive close to $1.65.

Nonetheless, the cryptocurrency skilled a slight correction close to the stated peak degree, dropping by round 4% on profit-taking sentiment amongst daytraders. Furthermore, because the correction occurred proper across the Bull Flag resistance, it raised the opportunity of prolonged selloffs forward.

Ought to a pullback occur, it should danger dropping MATIC to its first line of weekly assist in the direction of its 20-week exponential shifting common (20-week EMA; the inexperienced wave) round $1.231. In the meantime, additional weak point may shift the draw back goal to the 50-week EMA (the velvet wave) round $0.868.

Bulls have the higher hand

Along with Bull Flag, MATIC painted a Cup and Deal with sample that offered the opportunity of the cryptocurrency hitting $1.80 quickly.

Twitterati MK2 Buying and selling noticed the bullish reversal indicator first on the Polygon token’s day by day worth chart. It confirmed the worth forming a rounding backside (Cup) following an upside transfer after which portray a descending channel vary (Deal with).

MATIC/USD day by day worth chart that includes cup and deal with sample. Supply: TradingView.com

A subsequent breakout from the Deal with’s buying and selling vary would sign bullish continuation. In doing so, the worth would eye a run-up in the direction of the extent at size equal to the Cup’s depth. Because of this, MK2 Buying and selling expects MATIC at $1.80 within the coming periods.

Macro fundamentals

The newest bout of shopping for within the Polygon market appeared after Upbit, one of many main South Korean crypto exchanges by quantity, added MATIC pairs to its buying and selling platform. Moreover, the change additionally listed Solana and NuCypher pairs.

Solana was one other standout performer on Friday with its native token SOL surging by over 11.5% whereas NuCypher’s NU rallied by greater than 845% Friday after the Upbit’s announcement.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you must conduct your individual analysis when making a choice.