- Polygon (MATIC) takes a quick rebound and stages a 2.7% surge in its daily run to reach $1.01.
- An analyst has predicted that MATIC could reach the 2023 high in just a few weeks as a bullish triangle pattern forms.
Polygon (MATIC) has quickly flipped over from a daily bearish chart recorded over the weekend to a bearish score of 98/100. Its current price action agrees with the market sentiment as it makes a 2.7% surge in the past 24 hours, and a 1.2% surge in the past seven days to extend its monthly gains to 32%. MATIC was trading at $1.01 at the time of writing.
A couple of hours ago, analysts observed the formation of a bullish pattern on its price chart, indicating that MATIC could make an incredible surge to reach its 2023 high in the coming weeks. According to a Twitter page identified as World of Charts, a breakout and retest have been confirmed in a bullish triangle pattern.
Finally, Breakout & Retest Has Confirmed As Expected Massive Volume Coming In Expecting Massive Bullish Wave Can Start Anytime Now As The Trend Is Up In Crypto It’s Easy To Find Entries With In Direction Of the Trend. Massive Breakout Happening In #Matic This Breakout Can Lead Massive Bullish Wave In Coming Weeks.
A quick look at the market data also shows that MATIC would have to deal with a near-term resistance level of $1.11 before heading to the 2023 high of $1.56. According to the analysts, liquidation might increase sharply at that point, triggering a bear-dominated market which could cause a huge decline.
More on the MATIC Price Analysis
Another look at the exchange reserve of MATIC indicates that there is a decline according to CryptoQuant data. This signals that the bull run could be realized. However, metrics including MVRV do not look good, posing a threat to the potential rally. MVRV ratio declined over last week as whales made little accumulation attempt. Regardless, 637,564 addresses hold the token with 66% of the asset held by whales.
A quick review of CoinMarketCap (CMC) data also shows that 74% of the MATIC tokens have been held for over a year, with 23% held between one and twelve months. Interestingly, only 2.5% of the asset has been held in less than a month. Another data from CMC reveals that 90.9% of the active addresses hold MATIC tokens worth between $1 to $1k. 8.9% of the addresses hold between $1k to $100k worth of the token, and 0.18% of the addresses hold at least $100k worth of MATIC. With that, 66.7% of the assets are held by whales, 17.9% are held by investors, and 15.6% are held by retailers.
One of the most useful metrics, MACD, shows that there could be a bearish crossover. In addition, MATIC reportedly touched the upper limit of the Bollinger bands, leading to the recently experienced price drop. The Money Flow Index (MFI) indicates a reading above the neutral levels. Most importantly, MATIC was trading above the 20-day simple moving average (SMA). If the asset can sustain this level, it could turn it into a support and rely on it for a bullish reversal. Analysts predict that MATIC could hit $2.8 before the year ends.
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