Polygon's MATIC Primed to Revisit All-Time Highs
Key Takeaways
- Polygon’s MATIC token appears to be heading towards $1.63.
- Breaking through this resistance level would likely trigger a new bull run.
- Prices must hold above $1.24 for the bullish outlook to prevail.
Polygon’s MATIC token looks ready to resume its uptrend as prices build a massive bullish pattern and whales accumulate millions of tokens.
MATIC Prepares for New Bull Run
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.
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.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article