Polygon (MATIC) May Approach $1 in Near Term, Analyst Predicts a Bull Run
On August 21st, the cryptocurrency Polygon (MATIC) experienced a significant surge, propelling it to one of the top performers in the digital asset market. Currently, MATIC holds the coveted third position among the top-100 cryptocurrencies based on market capitalization. Within the past 24 hours, the value of MATIC has seen a notable increase of 9%, solidifying its status as the third-best performing digital asset, trailing behind TRON with a 12% surge and BitTorrent with an impressive 22% increase.
Over the course of the previous week, MATIC has witnessed a remarkable rally, resulting in a substantial 23% surge in its value. This surge has positioned MATIC at a pivotal juncture, as indicated by a recent technical analysis. Notably, a prominent crypto analyst, World of Charts (@WorldOfCharts1), has observed that Polygon has successfully broken free from a protracted downtrend lasting over six months. The analyst has expressed optimism regarding the potential for MATIC to surge towards the $1 mark.
Since mid-March, MATIC has been trading within a descending channel, characterized by two parallel downward-sloping trend lines. Typically, consolidation patterns such as a descending channel, wherein the price forms lower highs and lower lows, are considered bearish within the context of a downtrend. However, they can signal a potential reversal once a breakout occurs.
On August 20, Polygon (MATIC) finally managed to break out of this descending channel. This breakout is considered a significant bullish signal, potentially indicating the end of the previous downtrend. The breakout by MATIC holds crucial importance, not only representing a shift in market sentiment but also charting a new trajectory for potential price targets.
At the current juncture, the price of MATIC stands at $0.4775, while the breakout point is approximately at $0.44. Following this breakout, the analyst projects a potential increase of over 143% in price. Such a significant rally could drive the MATIC price above $1.10.
To affirm a bullish outlook, it is of utmost importance for the current price level post-breakout to serve as a new support level. Additionally, closely monitoring the trading volume and market sentiment is expected to play a pivotal role in sustaining the ongoing upward momentum. Increased trading volume typically accompanies genuine breakouts, providing additional reassurance.
An impending catalyst for another rally for Polygon is on the horizon. As announced in mid-July, Polygon is set to complete the migration from MATIC to POL on September 4. This upgrade is eagerly anticipated, particularly for its role in enhancing the functionality of Polygon’s native token within the existing Polygon Proof-of-Stake (PoS) network. POL is poised to become the primary gas and staking token of Polygon PoS, a substantial development for the security framework of the Polygon network.
It’s worth emphasizing that the information presented in this article is for educational purposes only and does not reflect the opinions of NewsBTC regarding investment decisions. Before making any investment decisions, thorough research and risk assessment should be conducted.
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