• MATIC price breached the neckline of an inverse head-and-shoulders pattern, suggesting a 62% upswing.
  • Dharma leverages Polygon’s solutions to allow its users to trade cryptocurrencies without fees.
  • A decisive close below the September 3 swing low at $1.40 will invalidate the bullish thesis.

MATIC price is looking to advance higher and recover to levels last seen on May 18. On this note, Polygon has already breached a crucial barrier and is looking to kick-start its massive upswing.

Polygon lends a hand to Dharma

In a recent announcement on September 3, Dharma, an Etheruem wallet that connects to traditional bank accounts, stated that it had enabled Polygon network support. This development will allow Dharma and its users to leverage the Layer 2 scaling solution’s features like low gas fees, high throughput, and low latency transactions. 

Regarding this launch, Dharma stated,

Today, users around the world can experience the magic of DeFi, through a beautiful and intuitive user experience, with zero network fees. 

The 2017, 2018 bull run, the DeFi summer in 2020 and the 2021 bull run made it clear that transacting on the Ethereum blockchain during phases of hype was next to impossible due to high gas fees. Users willing to spend thousands of dollars on gas fees were allowed to jump on exciting new launches and profit from that exclusivity, while retail was mostly left out.

Dharma adds in their blog how they tried to circumvent this by subsidizing user transactions. However, this alternative method was not enough during busy days, which led them to Polygon. This integration will give users the ability to cash out to their bank accounts directly with Polygon wallet.

MATIC price kick-starts a mini bull run

MATIC price is forming an inverse head-and-shoulders pattern, which broke out on September 3. This technical pattern contains three swing lows, with the middle one the deepest and known as the head. The swing lows on either side of the head form the shoulders.

The peaks of these swing lows can be connected using a horizontal trend line referred to as the neckline at $1.66.

This setup forecasts a 62% upswing, obtained by measuring the distance between the head’s lowest point and the neckline and adding the breakout point at $1.66.

On September 3, MATIC price breached the neckline at $1.66 as it produced a 12-hour candlestick close above it, confirming a breakout. Therefore, investors can expect a continuation of this uptrend to slice through the $1.94 and $2.32 resistance barriers before getting a chance to tag the intended target at $2.70, coinciding with the all-time high.

MATIC/USDT 12-hour chart

MATIC/USDT 12-hour chart

While MATIC price has breached the neckline at $1.66, it is uncertain that this uptrend will continue. In a bearish case, the bears might break below the horizontal resistance at $1.66, indicating weak buying pressure.

If the bulls fail to reclaim the said barrier, it will lead to a further downswing, but a breakdown of the September 3 swing low at $1.40 will invalidate the bullish thesis.

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP