As a seasoned crypto investor with a keen interest in technical analysis, I find the parallel channel pattern discussed by analyst Ali intriguing for Polygon (MATIC). Consolidation within a parallel channel is not uncommon, and it’s important to pay close attention to the breakout from this pattern as it could reveal the direction of the next trend.
As a researcher studying the cryptocurrency market, I have analyzed the potential price movement of Polygon. Should its price surpass a certain threshold, an approximate increase of 17% could be anticipated.
Parallel Channel May Reveal What Could Be Next For Polygon
As a technical analyst, I’ve noticed in my recent post on X that Polygon has been consolidating within a parallel channel over the past few weeks. This technical analysis term “parallel channel” is created by drawing two trendlines with a consistent angle and distance between them.
The upper line of this pattern links together the peaks of an asset, while the lower line touches the troughs. When the price remains within the area enclosed by these two lines (referred to as a “channel”), it’s likely that the price will continue moving sideways without significant trending up or down.
It’s natural for the upper line to potentially cause price reversals leading to downtrends upon retesting. On the other hand, the lower line might function as a supportive foundation, contributing to price recovery and a resumption of the uptrend.
In the context of Transmission Axle (TA) systems, various kinds of parallel channels exist. Among them are channels that slope upward, referred to as ascending channels, and those that slope downward, called descending channels.
Within the scope of our discussion, a parallel path aligned with the timeline is significant. Here, events or processes occur concurrently at consistent upper and lower levels.
Just as with other technical analysis consolidation patterns, a breach of the trendlines in a parallel channel can indicate the continuation of the prevailing trend. In simpler terms, if the price breaks out above the pattern, it could be a sign of increasing bullishness for the asset. Conversely, a breakdown below the channel may suggest that the bearish trend is resuming.
Here’s a chart displaying the evolution of Polygon’s parallel channel over the last month.
Based on the graph, it’s clear that Polygon has been trading within a sideways pattern or parallel channel since the recent cryptocurrency market downturn.
Matic’s attempt to advance to higher levels has been unsuccessful thus far, as it hasn’t managed to breach through. The cryptocurrency hovers close to its current position, suggesting a possible upcoming repeat of this test.
Should the Polygon price breach its current channel and rise, there’s a strong possibility of a prolonged uptrend. As per Ali’s analysis, surpassing the $0.76 mark could instigate a significant 17% escalation, propelling MATIC to reach $0.88.
As a crypto investor, I’ve identified a price target based on the recent market crash that pushed the asset into consolidation. This downturn began around that specific level. With the potential for a retest of the upper channel line on the horizon, it will be intriguing to observe how the cryptocurrency behaves in the upcoming days.
MATIC Price
Yesterday, I came close to reaching the $0.76 resistance level in my Polygon investment, but unfortunately, the price took a turn for the worse and has now retreated to around $0.72.
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2024-05-22 19:16