Polygon Crypto At Major Support: Can It Gain 55%; Analysts Weigh In

• Polygon price has slipped below the 20-day EMA and lost around 12.48% in four days.
• RSI has displayed a bullish signal on the major support level.

After being rebranded from Matic Network and given a new ticker, the Polygon (MATIC) token is now successfully emerging from a descending triangle.

This suggests that the most recent downward trend may be coming to an end. With a bullish target of $0.69, analysts think the breakout creates a strong play for a rally.

This follows rising market activity and trading volumes, which have been serving as smoke screens for the apprehension and uncertainty surrounding the cryptocurrency market.

However, the Polygon crypto price has kept falling while facing resistance from a descending trendline.

Is the Downtrend in POL Price Over?

The bearish continuation pattern that typically appears in downtrends is a descending triangle. When a stock hits a relatively flat support level after making a string of lower highs, this pattern is taken into consideration.

This pattern has encircled Polygon’s price action for the last few weeks, with resistance levels frequently pushing prices lower.

Analyst Ali Martinez showed that Polygon has now broken free from this pattern. When buyers overcome the resistance, as indicated by a breakout above the descending trendline, a trend reversal may be imminent. POL is still rising at $0.49, and there is growing bullish momentum.

It makes for a breakout and aligns with important Fibonacci retracement levels. The token may make a comeback when it traces back to $0.69, the 23.6% Fibonacci retracement from the prior decline.

Nearly 46% above current prices, this offers traders a significant upside at this point. The price is expected to achieve its target of around 55%.

Polygon Price Shaped Descending Triangle Pattern; What’s Next?

When writing, MATIC crypto was trading at $0.45 which has advanced by 2% over the past 24 hours. The market capitalization was $861.75 Million and the 24-hour trading volume was $14.11 Million.

In November, the MATIC price witnessed a strong bullish rally. However, the bullish rally has interrupted near the $0.7000 hurdle.

In the first week of December, the price witnessed a great fall and has declined by 37% till now.

If the price bounces back from the major support level, it might travel to the descending trendline. Once the Polygon price breaks out from the descending triangle, it could be a bullish sign, the breakout could attract buyers which may lead to a strong bullish trend.

On the other hand, if the price dives below the major support level, it would be a bearish signal. The price below the major support level could spread fear among sellers.

Here, most investors and traders might prefer to book profit which may result in strong selling pressure.

Polygon Price on the Verge of Breakout

Polygon appears to be at a pivotal point in its market performance. After experiencing a significant decline, it has formed a descending triangle pattern but has seemingly broken free from this bearish trend.

Analysts are optimistic, projecting a potential rally towards the $0.69 target, which suggests a possible upside of around 55% from its current price of $0.45.

However, the success of this reversal hinges on the price maintaining above the major support level.

If it drops below this threshold, it could trigger further selling pressure and bearish sentiment among investors.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.