Polygon Price Prediction: End-of-Correction Pattern Hints 30% Upswing In April

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On Monday, MATIC, the currency used in Polygon‘s layer 2 solution, experienced a significant increase as the cryptocurrency market began to recover. The price rise was fueled by Bitcoin‘s breakthrough above $70,000, which created a favorable environment for altcoins like MATIC. Consequently, buyers were able to recoup their losses and drive up the price of Polygon‘s coin. As a result, MATIC rebounded from a 50% drop and jumped 7%, breaking through the previous correction trend’s resistance.

MATIC’s Key Indicators Favor a Strong Market Comeback

Polygon Price Prediction: End-of-Correction Pattern Hints 30% Upswing In April

In the past few hours, the Polygon price has followed a descending triangle pattern on its 4-hour chart, which has resulted in a significant drop from its peak of $1.29 down to $0.86. This decline represents approximately a 33% reduction in value.

Despite the 50% pullback indicated by the Fibonacci tool following the correction, the price bounced back to $0.947. With the larger market on the mend, this surge overcame the resistance line of the wedge formation, suggesting the end of the correctionary phase.

In his most recent examination, well-known trader Alichart has brought attention to Polygon’s MATIC, suggesting a possibly favorable trend based on the available data. The significant signal in this case is the 30-day Market Value to Realized Value (MVRV) ratio.

At present, the indicator is registering a reading below 1, which is typically an indication that the asset could be underpriced and might be a good buying opportunity. This observation is especially significant considering that historical data shows that when the MVRV (Maturity Value Ratio) level was similar to the current one, MATIC‘s price experienced substantial rises – increasing by 112% in one instance and 87% in another.

Based on the 30-day MVRV (Moving Average Value Realized), it’s recommended to buy $MATIC as it currently falls within the “buy zone”. Previously, entering this area led to price increases of approximately 112% and 87% for Polygon. Keep an eye on this trending pattern in $MATIC.
— Ali (@ali_charts) April 7, 2024

If the Polygon price successfully breaks through this level, it could lead to a surge in buying activity, potentially pushing the price up to $1.08 and then further to $1.3.

Technical Indicator

  • BB indicator: The uptick in the upper boundary of the Bollinger Band indicator highlights an intraday momentum actively bullish.
  • Moving Averages Convergence Divergence: A bullish upswing in the MACD(blue) and signal(blue) indicate the market participants turning to bullish sentiment.

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2024-04-08 22:25