Polygon (MATIC), an Ethereum token fueling the Polygon Network, has been navigating turbulent market waters. Over the past month, MATIC’s value plummeted by 20%, a significant downturn for the altcoin. However, the tides are turning as it has shown signs of recovery, gaining 2.28% over the past seven days.
Currently, it trades at approximately $0.56, marking a 1.58% increase in the last 24 hours, with a market capitalization of $5.58 billion. Notably, its trading volume surged 28%, reaching $168.44 million. This uptick has bolstered optimism among analysts, who are increasingly bullish on MATIC’s potential for an altcoin rally.
In a recent analysis, ZAYK Charts highlighted a bullish outlook for MATIC on the MATIC/USDT trading pair. The analysis identified a falling wedge formation on a one-day timeframe, typically viewed as a bullish reversal pattern. This setup suggests a possible shift from bearish to bullish, often leading to significant upward price movements upon breakout.
This falling wedge pattern usually emerges after a downtrend, indicating diminishing selling pressure. As the price nears the wedge’s apex, the likelihood of a breakout increases. According to ZAYK Charts, the token is approaching this critical point, signaling a potential breakout.
MATIC Bullish Rally Predicted
Another crucial element of the analysis involves the Relative Strength Index (RSI), which indicates bullish divergence. A bullish divergence occurs when the RSI forms higher lows while the price forms lower lows, indicating a weakening bearish momentum and a possible upside reversal.
Based on these technical indicators, ZAYK Charts predicts a bullish rally of 70-80% for MATIC in July. The falling wedge formation and bullish RSI divergence suggest a strong potential for substantial upward movement. This forecast aligns with historical patterns where such formations and divergences have led to significant price increases.
MATIC currently hovers around $0.56, with a crucial level to maintain above $0.4989 to advance towards the initial major resistance at $0.6290. Breaking above $0.6290 could push MATIC towards $0.7569 and potentially up to $0.8515. These levels indicate potential points of resistance or value increase.
On the downside, if the price drops, the first support level is at $0.4989. Falling below this level could lead to a further decline to around $0.3950. The Exponential Moving Averages (EMAs) on the daily chart indicate a bearish signal, as it is below all EMAs.
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