Polygon could surge 30% following month-long consolidation

Polygon (MATIC) price has consolidated for the last 40 days, given the bright outlook on the cryptocurrency market for spot Ethereum Exchange Traded Fund (ETF) approval by the US Securities and Exchange Commission (SEC). A daily candlestick close that flips the 50-day exponential moving average to support might result in 30% gains.

Polygon price setting to rise

Polygon price has been stabilizing for more than 40 days inside the $0.653 to $0.750 range. During this sideways movement, MATIC was rejected by a weekly resistance level at $0.738 thrice. The fourth retest, however, looks promising after it bounced off the $0.675 to $0.712 demand zone.

If Polygon price flips the 50-day exponential moving average (EMA) into a support level, investors can anticipate a 30% bullish advance to $0.939, which is the 50% Fibonacci retracement level of the 54% crash noted between March 13 and April 13.

Supporting this north-bound move is the Relative Strength Index (RSI) indicator that has rebounded from the oversold level and has broken the mean line 50. Now, this level acts as support, indicating a dominance in bullish momentum.

The same can be seen with the Awesome Oscillator (AO) indicator, which has recovered above the zero mean line, signaling a shift in momentum from bears to bulls.

MATIC/USDT 1-day chart

Despite the optimistic outlook, if Polygon price produces a daily candlestick close below $0.653, it would produce a lower low and invalidate the bullish thesis. This bearish development could see MATIC sink 20% to the weekly support level of $0.5907.