MATIC Price Prediction: Polygon coils up, eyeing 65% upswing
|- MATIC price shows a bullish pennant formation, a breakout of which forecasts a 65% rally.
- The surge will face a new tailwind after creating a higher high at or above $0.417.
- A breakdown of the 61.8% Fibonacci retracement level at $0.281 might trigger a bearish scenario for Polygon.
MATIC price is trading inside a consolidation phase that could break out shortly.
MATIC price prepares for blastoff
MATIC price rallied nearly 195% from March 5 to March 11, setting up a flagpole. Consolidation in the form of a pennant followed this spike, creating a bull pennant. This continuation pattern forecasts a 65% upswing, determined by measuring the distance between the flagpole’s top and bottom.
The target is obtained by adding this measure to the breakout point at $0.372.
Polygon could either slice the upper trend line of the consolidation right away or retrace toward the lower boundary and follow it up with a spike.
While a breach of the pennant’s upper boundary theoretically signals the start of an upward move, a decisive close above the supply barrier at $0.417 will confirm the upward trajectory to $0.618.
In such a case, MATIC price could rally another 45% to its intended target. Investors also need to pay attention to the resistance level at $0.481. The trapped buyers from the previous bull run could likely start booking profits at the level mentioned above and prematurely end the upswing.
MATIC/USDT 12-hour chart
On the flip side, if sellers drive MATIC price to shatter the 50 Simple Moving Average (SMA) at $0.358, a 12% drop to the 100 SMA coinciding with the lower boundary at $0.316 seems plausible.
However, a breakdown of the 61.8% Fibonacci retracement level at $0.2815 will put an end to the bullish thesis.
In such a case, an additional 10% drop to $0.251 could occur.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.