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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

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.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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