As an experienced analyst, I have closely monitored the price action of Polygon (MATIC) over the past few weeks and observed its oscillation between two horizontal levels. While the price has been range-bound, a closer look at the daily chart reveals a gradual shift in power from sellers to buyers due to the formation of higher lows.
The price analysis for MATIC, the native cryptocurrency of Polygon, has shown a significant surge in demand since mid-May, resulting in a V-shaped rebound from $0.643 to its current value of $0.718, marking an 11.8% increase. The optimistic sentiment in the crypto market is fueled by the anticipation of an approved Spot Ethereum ETF, leading to a stronger recovery trend within the sector.
Ethereum Leads Bullish Sentiment In Altcoins as SEC ETF Approval Looms
Over the past six weeks, I’ve noticed that the price of Polygon (MATIC) has been bouncing between two horizontal levels at $0.768 and $0.643 on the chart. During this period, I’ve observed multiple price reversals off both levels, which suggests a balance of power between buyers and sellers in the market. However, upon closer inspection of the daily chart, I’ve noticed a pattern emerging – a series of higher lows formed by the candle wicks. This is an indication that buyer influence is gradually increasing over the asset, potentially setting the stage for a price trend upward.
This week, the wider cryptocurrency market has seen a significant increase in purchasing power, with Ethereum ETF approvals by the SEC being the main catalyst. As a result, MATIC‘s price has been positively affected, making it a strong candidate to break through its resistance level at $0.768.
If the MATIC price manages to burst through its current resistance level with a daily closing figure above this point, it may trigger a strong bullish trend and propel the price towards $0.95. A successful breakout could result in a potential profit of approximately 24% if the price reaches this level.
On the weeklong chart, MATIC is exhibiting a symmetrical triangle pattern, implying that the overall direction could continue to be flat. Yet, if MATIC manages to surpass the triangle’s upper limit, it would serve as a strong signal for an uptrend.
Technical Indicator
- BB indicator: The flattish trend of the Bollinger band indicator accentuates a neutral sentiment among market participants.
Relative Strength Index: The rising RSI slope in the daily chart indicates the increasing buying pressure for MATIC at $0.64 dip.
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2024-05-22 18:46