This bullish retracement could trigger a rally to $1.70 for MATIC price

MATIC price shows an interesting setup in formation. A build-up of buying pressure could be the key to triggering a massive upswing for Polygon.

MATIC price needs to gather strength 

MATIC price set a range, extending from $1.24 to $1.69 as it rallied 36% between February 24 and March 2. These points subdued Polygon, which has been traversing in between this area  since March 2. However, things could be heating up and bulls could be preparing to contest the upper limit of this range.

On March 15, MATIC price set a swing low at $1.33 and rallied 30% to briefly deviate above the range high. However, this upswing failed to maintain its momentum, leading to a 23% crash that swept the March 15 swing low at $1.33.

This price action is important since it sets the foundation for a triple bottom pattern. As MATIC price approaches the 50% retracement level at $1.47, a rejection here could send the Layer 2 token to retest the $1.33 barrier. Such a move would complete the bottom reversal pattern and trigger a massive surge in buying pressure. 

The resulting upswing is likely going to shatter the midpoint at $1.47 and make its way toward the range high at $1.69. This uptrend would constitute a 30% gain and is likely where the bulls will slow down.

MATIC/USDT 1-day chart

Supporting the uptrend for MATIC price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This metric shows that the only cluster of “Out of the Money” investors that could pose serious trouble, extend from $1.61 to $1.72. Here, roughly 48,000 addresses that purchased nearly 3.67 billion MATIC tokens are underwater.

Interestingly, the path up to this hurdle shows little-to-no resistance, which coincides with the outlook depicted from a technical perspective.

MATIC GIOM

While things are looking up for MATIC price, a six-hour candlestick close below $1.24 will invalidate the bullish thesis since it would create a lower low.