Polygon, also known as MATIC, has been a popular choice among cryptocurrency traders due to its fast and cheap transactions on the Ethereum network. The coin has been in a correction phase for the past few weeks, but recent developments suggest it may be primed for a bullish rally.
A falling wedge is a bullish continuation pattern that forms when the price of an asset consolidates in a narrowing range with lower highs and lower lows. The design is characterized by two converging trendlines, with the lower trendline being steeper than the upper trendline. In the case of Polygon, the falling wedge pattern has been forming on the price chart, indicating a potential bullish continuation.
Recently, the price of Polygon experienced a fake breakdown below the lower trendline of the falling wedge pattern. However, the price quickly rebounded and reclaimed the breached trendline, providing a bullish signal. This move suggests that the bulls are in control and could increase costs.
Traders interested in Polygon should wait for a bullish breakout from the pattern’s resistance trendline. A breakout above the resistance trendline would confirm the bullish continuation and potentially raise the coin’s market value to $1.2. This price level has been a significant resistance level for Polygon in the past and could provide a psychological barrier to the price’s upward momentum.
Additionally, the 4-hour RSI slope moves sideways, accentuating losing bearish momentum. This trend provides additional confirmation for the upcoming bullish breakout. If the RSI slope continues to move sideways or turns upwards, it could suggest a shift in momentum toward the bulls.
In conclusion, Polygon currently exhibits a falling wedge pattern on the price chart, indicating a potential bullish continuation. While the price recently experienced a fake breakdown, it quickly rebounded and reclaimed the breached trendline, providing a bullish signal. Traders should wait for a bullish breakout from the pattern’s resistance trendline and watch the 4-hour RSI slope for additional confirmation. With these signals in mind, Polygon could see a bullish rally and reach a market value of $1.2.
However, it’s important to note that cryptocurrency markets can be highly volatile, and price predictions are not always accurate. Traders should conduct their research and analysis before making any investment decisions.
One factor that could impact Polygon‘s price shortly is the overall market sentiment toward cryptocurrencies. Bitcoin, the world’s largest cryptocurrency by market cap, has been experiencing a period of volatility in recent weeks, which has had a ripple effect on other cryptocurrencies. If Bitcoin and other major cryptocurrencies continue to experience volatility, it could also impact Polygon’s price.
On the other hand, if the overall sentiment towards cryptocurrencies improves, it could provide a tailwind for Polygon’s price. The recent announcement of Visa partnering with Crypto.com to enable crypto purchases using Visa cards is a positive development for the cryptocurrency industry as a whole. More mainstream adoption of cryptocurrencies could drive demand for Polygon and other altcoins.
In addition, Polygon’s growing ecosystem could also contribute to its price growth. Polygon has been working on expanding its ecosystem by partnering with various projects and protocols in the decentralized finance (DeFi) space. This has increased the number of applications built on the Polygon network, which could drive demand for the coin.
Overall, while no one can predict with certainty what the future holds for Polygon’s price, several factors could contribute to its growth. Traders interested in Polygon should keep an eye on market sentiment towards cryptocurrencies and the coin’s growing ecosystem. With the potential for a bullish rally soon a coin to watch for traders looking for new opportunities in the cryptocurrency market.
