Polygon MATIC's price has been slowly declining and is down by 42% following the swift rebound to the reaction high price of $2.43 from the May correction. While MATIC price action appears to be heading south, the Ethereum-based scaling altcoin is raising the probability of a sharp trend reversal to the upside.
Polygon has continued to lead a downward trend since May 26, printing prices lower highs and lower lows. On the daily chart, Polygon price appears to be forming a falling wedge pattern, that begins wide at the top and contracts as the prices move lower.
MATIC price action forms a cone that slopes down as the reaction highs and reaction lows converge, creating the bullish price chart pattern.
The lower trend line suggests that MATIC price is forming shallower lows – indicating a decrease in selling pressure with a less negative tilt formed.
The lighter MATIC trading volume also suggests that it could be anticipating a breakout.
The potential rally of Polygon can be measured from the vertical distance between the support and resistance level at the starting point of the descending wedge pattern. This measurement can then be added to the breakout point level of the pattern, to give Polygon two possible targets.
If the pattern is robust, it can be used to anticipate MATIC price moves. According to the measurement on the technical analysis, Polygon could rally by 30%, reaching $1.95, coinciding with the 61.8% Fibonacci extension as a conservative target.
Should Polygon MATIC be met with a huge spike in buying pressure could surge by over 44%, reaching $2.17.
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