- MATIC price is preparing for a 100% leg-up as a key bullish pattern develops.
- A decisive close above $1.63 will confirm the start of the uptrend to $2.63.
- A daily close below the $1.20 support floor will invalidate the bullish thesis.
MATIC price has been on a massive downswing after the September 7 crash, but things seem to be recovering as a bullish pattern continues to progress, and a buy signal is starting to line up.
MATIC price blast-off is around the corner
MATIC price witnessed a 38% sell-off between September 5 and September 7. However, the recovery was swift, pushing Polygon to $1.25, where it currently stands.
Going forward, investors can expect the altcoin to head higher due to three reasons; the market structure for the big crypto looks bullish, the inverse head and shoulder pattern and the Momentum Reversal Indicator (MRI) has flashed a ‘yellow’ up arrow, indicating that a buy signal is around the corner.
From June 5 to September 14, Polygon price formed three distinctive swing lows, with the central one deeper than the rest and known as the head. The valleys on either side of the head are known as shoulders. Drawing a trend line connecting the swing highs of these valleys shows a horizontal resistance barrier at $1.63, known as neckline.
This technical formation forecasts a 61% upswing from the ceiling mentioned above, obtained by measuring the distance between the neckline and the head’s lowest point. Adding this distance to the breakout point at $1.63 reveals the target at $2.63.
Initially, MATIC price needs to rally at least 30% to encounter and overcome a crucial resistance barrier at $1.63, aka the neckline. Doing so will open up the path for MATIC price to climb to the intended target.
MATIC/USDT 1-day chart
On the other hand, if MATIC price fails to climb higher but heads lower and breaches the immediate support level at $1.20, it will create a lower low and invalidate the bullish thesis.
In such a case, Polygon could slide lower to $1 and, in some cases, $0.93.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.