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.
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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