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MATIC price builds momentum for Polygon to breakout to $2.50

  • Polygon sees bullish price squeeze continuing as higher lows keep persisting. 
  • MATIC price sees bulls building momentum to go for a breakout above $1.80.
  • If MATIC price can consolidate above $1.80, the price target will be $2.48 in the coming weeks.

Polygon (MATIC) price has been trading higher in a small grind with higher lows and the topside being squeezed against the monthly R1 at $1.70. As momentum and volume are building, expect an outbreak above the R1 and follow-through above $1.80 as stops from bears are taken out. Supposing bulls can get a daily close above $1.80, expect the uptrend to continue towards $2.48.

MATIC price sees bulls prepositioning for $2.48

MATIC price has been on a very slow grind higher, with higher lows and price action on the upside being squeezed against the monthly R1. As bulls engage more and more in this squeeze, expect an imminent bullish breakout to happen towards $1.80. In that pop, bears' stops will be run and expect to see quite some bears flee MATIC..

MATIC price will see bearish pressure taking a back foot, opening the road for bulls to look for more upside potential.. The first intermediary level bulls will target will be the monthly R2 resistance level at $2.20. Expect the bull run to take a short pause around there, before hitting the final target at $2.48. At this level, bulls will face quite some resistance, as the monthly R3 is situated at around that level – as it was in the month before; which was also formerly  the historical high of May 26.

MATIC/USD daily chart

MATIC/USD daily chart

With a lot of attention this week on earnings out of the Nasdaq index, expect some disappointing results from some big tech companies to result in a quick nosedive for MATIC price.. Bulls will want to take their profit whilst they can, and price will fade quite rapidly towards $1.20 and $1.06. This double bandwidth should hold as support in the medium term.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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