MATIC Price Forecast: Polygon primed for a 70% rally

MATIC price is buoyed by the new deals announced today, despite broader weakness in the cryptocurrency market. Overall, the outlook remains bullish, but a more sustained, collective sell-off among cryptos will undermine or diminish Polygon’s upside potential.   

MATIC price performance exceeds expectations the last four weeks

Today, MATIC price is attempting another sustainable breakout from a minor correction on the daily chart. The developing volume profile has been supportive through most of the trading day, accenting the emotion and commitment that should accompany a breakout into new highs.

The daily Relative Strength Index (RSI) is not registering a new high along with price, creating a bearish momentum divergence, but it is the early stage of the rally. On a weekly basis, the RSI rests at 96, just short of the 96.72 reading in February, suggesting an overbought market. However, there is a caveat to the February precedent. MATIC price continued the rally and climbed an additional 130% over the next two weeks. 

Under the bullish thesis, MATIC price should tag the 161.8% Fibonacci extension of the minor correction at $1.32 by the end of the week. If MATIC price overcomes the extension level, speculators should turn their attention to the 261.8% extension of the March-April decline at $1.53.

Due to the weekly RSI precedent in February, the current overbought condition should not void bigger aspirations for MATIC price. The 261.8% extension of the May correction at $1.99 is in the crosshairs, representing a 70% gain from the current price.

MATIC/USD daily chart

To be clear, the only obstacle for MATIC price is an acceleration of the recent weakness in the crypto complex. Meaningful support begins at $1.00 and then the 38.2% retracement of the April-May rally at $0.71.