Polygon Breaks Out Targeting New Record Highs

Key Takeaways

Polygon’s MATIC token has risen by more than 22% in the last four days.
The sudden upswing has allowed the token to break through resistance.
Further buying pressure could push MATIC to $2.80.

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Polygon’s native token, MATIC, appears to be catching up with the rest of the market after slicing through stiff resistance. Now, technical indicators and on-chain metrics suggest that prices could soon reach a new all-time high. 

Polygon Commences Rally

Polygon has overcome its significant resistance barriers and now looks primed for new all-time highs. 

MATIC has enjoyed bullish momentum in the last four days, rising by more than 22% in market value. Prices have increased from a low of $1.52 on Oct. 23 to a recent high of $1.86.   

The sudden upward pressure appears to have derived from the breakout of a symmetrical triangle. As prices have made a series of lower highs and higher lows since Apr. 26, the consolidation pattern developed on MATIC’s daily chart. Breaching the triangle’s upper trendline at $1.62 on Oct. 23 could have resulted in the resumption of the uptrend. 

The height of the triangle’s y-axis added to the breakout point suggests that Polygon could be bound for a nearly 86% bull rally. Therefore, further buying pressure around the current price levels could push MATIC to a new all-time high at $2.80.

Source: TradingView

While the odds appear to favor the bulls, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows no opposition ahead. The only considerable interest area sits at the $2 mark, where 1,280 addresses have purchased more than 35.5 million MATIC. 

Traders who have been underwater may attempt to break even on their long positions as Polygon approaches the $2 mark. The potential increase in selling pressure could slow down the uptrend, preventing MATIC from slice through this barrier and achieving its upside potential. 

Source: IntoTheBlock

The IOMAP also shows that the most significant support level underneath Polygon sits at $1.75. This support level could hold prices from dipping further in the event of a spike in profit-taking. If it did break, the demand wall at $1.62 would likely hold and allow prices to rebound. 

This news was brought to you by Phemex, our preferred Derivatives Partner.

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