- Polygon has dipped below $1 today, but according to one analyst, MATIC is getting closer to breaking free from a triangular pattern it has been caught in for some time.
- The analyst predicts that the token will hit $1.25 first but will slowly march towards $1.82, a price target that would require MATIC to double its current price.
In the crypto world, Polygon is one of the most significant projects as the most important Ethereum Layer 2 (L2) scaling solution. However, its price has not often reflected this importance, and MATIC is currently trading below $1. This may not be for long, opines one analyst, who says that the token will strike past $1.80 in the near term after it breaks free from a triangular trading pattern it has been caught up in for some time.
MATIC has lost 3.31% in the past day to trade at $0.9822 at press time, dipping from an intra-day high of $1.0204.
The dip has seen Polygon’s market cap continue to languish below the $10 billion mark, a level it last hit on December 28. This has allowed TRON to leapfrog MATIC as the 12th largest crypto project in the world. Its trading volume has been fairly consistent over the past week, around the $500 million mark, which ranks in the top 20 in the market and above some bigger projects like Dogecoin and Polkadot.
According to Ali Martinez, MATIC could be “at the cusp of breaking out from a significant symmetrical triangle.” This is a trading pattern inside a triangle made from two converging lines that connect several high and low price points.
He adds:
Be patient! Let the pattern fully develop, as the initial target for MATIC is set at $1.25, followed by a potential move towards $1.82!
At $0.98, MATIC is trading just outside the symmetrical triangle, as shown on the graph below.
A series of daily closes above this level could set the token up for a new trading pattern, with the analyst confident that a 100% gain is one the cards for Polygon.
Polygon (MATIC) to $1.82
On-chain and technical indicators conflict for MATIC, and neither the bears nor the bulls have a clear advantage. The Relative Strength Index, which shows traders whether it’s time to buy or sell an asset depending on market movements and interest, has been wavering around the halfway mark. While it’s now above 50, which indicates time to buy, it has not set a clear separation, indicating that bears could still overpower the bulls.
The inflows and outflows data also shows close contention between the bears and bulls. With exchange inflow at 165,000 and outflows at 164,000, there’s little to choose between the two factions.
Analysts remain divided on just how high MATIC can shoot up in this bull cycle, although most concur that a rise is looming. According to Rekt Capital, the long-term outlook depends on whether the token can retest its local resistance successfully, and if it fails, the strength of its support will also be key.
He told his 380,000 followers:
Finally tags the blue resistance for a +44% rally Rejects there, now dipping into the top of the Ascending Triangle MATIC broke out from On the cusp of a retest attempt Successful retest there may enable a revisit of the blue resistance above
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