Polygon’s MATIC Primed To Revisit All-Time Highs
Crypto Briefing | Sep 02, 2021 01:25AM ET
Polygon's MATIC token is building momentum, and could enter a 62% bull rally. Polygon’s MATIC token looks ready to resume its uptrend as prices build a massive bullish pattern and whales accumulate millions of tokens. Polygon is showing an impressive optimistic outlook. The scaling solution’s MATIC token appears to have developed a head-and-shoulders pattern on its daily chart since early June. The token is currently forming the right shoulder of the bullish formation. A spike in buying pressure that pushes MATIC above the head-and-shoulders’ neckline could lead to a significant run-up. Slicing through the $1.63 resistance level could mark the beginning of a new uptrend towards $2.64.
This bullish target is determined by measuring the height between the pattern’s head and neckline and adding that distance from the breakout point.
Although Polygon is yet to overcome the overhead resistance, behavior analytics platform Santiment reveals that large investors are preparing for prices to advance further.
The holders distribution chart shows that buy orders have been increasing over the last two weeks. Many addresses holding millions of dollars in MATIC, colloquially known as “whales,” have drastically increased their positions.
The wallets on the network with 10,000 to 10,000,000 MATIC have acquired roughly 54,370,000 tokens since Aug. 22, worth more than $76 million.
Get The News You Want
The mounting upward pressure correlates with steady growth in the number of daily active addresses on the Polygon network, which recently hit 7,450. The influx of buyers is usually followed by a spike in on-chain activity.
These fundamental factors suggest that retail and institutional interest is returning to MATIC, and volatility could follow.
It is worth noting that based on the head-and-shoulders pattern, MATIC needs to continue trading above $1.24 for the optimistic thesis to prevail. Failing to do so could encourage recent buyers to sell their holdings to avoid incurring significant losses.
In the event of a sell-off below the $1.24 support level, MATIC could target the 200-day moving average at $0.92.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.