As a seasoned crypto investor with battle-scarred fingers from past market dips and surges, I find myself captivated by the recent performance of Polygon (MATIC). With my hard-earned savings on the line, I can’t help but feel a mix of excitement and caution as MATIC’s meteoric rise places it among the top gainers in the crypto market.
On August 21, Polygon (MATIC) ranks as one of the top three performers in the crypto market among the top 100 cryptocurrencies based on market capitalization. In the past 24 hours, MATIC has experienced a notable increase of 9%. This recent price surge is surpassed only by cryptocurrencies related to Justin Sun, such as TRON (+12%) and BitTorrent (+22%).
Over the last seven days, MATIC has experienced a significant surge, gaining approximately 23% in value. This upward trend places MATIC at a pivotal point from a technical analysis perspective. Notably, crypto analyst World of Charts (@WorldOfCharts1) suggests that Polygon has broken free from a long-standing downtrend as per an analysis on X. The analyst anticipates that MATIC might reach the $1 milestone in the future.
Polygon (MATIC) Poised For 143% Rally?
As a crypto investor, I’ve noticed that Polygon’s price has been trapped within a downward-sloping channel since mid-March. This channel, defined by two parallel trend lines heading south, is a common consolidation pattern where the price keeps forming lower highs and lower lows. Normally, such a descending channel signals bearishness during a downtrend. However, if we see a breakout from this channel, it could potentially indicate a reversal in Polygon’s price movement.
On August 20th, the Polygon price surged out of its descending trendline, signaling a significant bullish indication that might mark an end to the previous price decline. This breakout is important because it not only reflects a change in market sentiment but also establishes a new path for potential future price milestones.
The potential breakout point is around $0.44. Once this breakout occurs, analysts predict a significant increase in the price by over 143%. If this price surge happens as anticipated, the MATIC price could surpass $1.10. In simpler terms, if Matic breaks through an important level, it might lead to a substantial recovery towards $1 in the coming days, according to World of Charts.
Essentially, after the price surge (or “breakout”), the current price point should act as a foundation for future support. If MATIC continues to stay above its downward trend line and manages to successfully retest this level, it could strengthen the optimistic perspective. However, if the price falls below the trend line once more, it might be seen as a misleading breakout, possibly prompting a review of the bullish hypothesis.
Additionally, investors may find it beneficial to keep an eye on trade volume and general market mood. These factors are likely to be crucial in maintaining the present bullish trend. A surge in trade volume often indicates authentic price surges, offering additional validation.
Get ready for another Polygon Rally! As previously announced in mid-July, Polygon is set to complete its transition from MATIC to POL on September 4th.
The highly anticipated upgrade known as POL is greatly looked forward to because it significantly boosts the capabilities of Polygon’s native token. Once put into action, POL will immediately provide useful functions within the current Polygon Proof-of-Stake (PoS) system. It will take on key roles as both the primary gas and staking token in the Polygon PoS network, playing a significant part in securing the Polygon network’s framework.
At press time, MATIC traded at $0.4775.
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2024-08-22 02:46