MATIC Price Forecast: Polygon must crack critical resistance to claim new all-time highs

MATIC price is trading inside an ascending parallel channel on the 4-hour chart.
The digital asset must hold a vital support level for a chance to resume its uptrend.
A potential breakout could see Polygon rise to nearly $3.

MATIC price has been trending upward for the past week, reaching a new all-time high of $1.89 on May 15. If the bullish momentum persists, Polygon may aim for $2.40 or even $2.90.

MATIC price targets higher highs

On the 4-hour chart, MATIC price seems to be forming a series of higher highs and higher lows. By connecting these pivot points using trendlines, an ascending parallel channel emerges.

Polygon is hovering around the channel’s middle trendline. Slicing through this resistance barrier could lead to an upswing towards the channel’s upper boundary at $2.40. But if the buying pressure is significant enough, MATIC price could break out of this consolidation pattern and advance another 26% toward $2.90.

This target is calculated by using the channel’s width added upward from the upper trendline.

MATIC/USDt 4-hour chart

Investors must be aware of the bearish divergence between MATIC price and the relative strength index (RSI) indicator on the 4-hour chart, which suggests investors are interested in collecting profits.

A spike in profit-taking that leads to a breakdown below the channel’s lower trendline can push MATIC price toward the 50 four-hour MA at $1.24. If this support level fails to hold, then a steeper correction to the 100 four-hour MA at $1.00 can be expected.

Share: Cryptos feed

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.

Join Telegram