An
analyst
has
explained
how
Polygon
could
see
a
rally
of
around
17%
if
the
cryptocurrency’s
price
breaks
above
this
level.
Parallel
Channel
May
Reveal
What
Could
Be
Next
For
Polygon
In
a
post
on
X,
analyst
Ali
has
discussed
about
a
parallel
channel
that
Polygon
has
been
consolidating
inside
during
the
last
few
weeks.
The
“parallel
channel”
here
refers
to
a
technical
analysis
(TA)
pattern
that’s
drawn
using
two
parallel
trendlines.
This
pattern’s
upper
line
joins
successive
tops
in
the
asset
while
the
lower
one
connects
bottoms.
While
the
price
is
inside
the
region
bounded
by
these
two
lines
(the
“channel”),
it’s
probable
to
stay
trapped
in
it,
only
consolidating
sideways.
Related
Reading
Naturally,
retests
of
the
upper
line
can
likely
result
in
reversals
back
to
the
downside,
while
the
lower
one
may
act
as
a
source
of
support,
helping
the
coin
bottom
out
and
regain
an
uptrend.
There
are
different
types
of
parallel
channels
in
TA,
like
the
ascending
and
descending
ones,
where
the
channel
is
slopped
upwards
or
downwards.
In
the
context
of
the
current
topic,
though,
a
parallel
channel
parallel
to
the
time
axis
is
of
interest.
This
means
consolidation
inside
this
channel
occurs
between
the
same
top
and
bottom
levels.
Like
with
other
consolidation
patterns
in
TA,
a
break
out
of
the
trendlines
of
the
parallel
channel
can
also
suggest
a
continuation
of
the
trend
in
that
direction.
More
specifically,
a
surge
above
the
pattern
can
suggest
bullish
momentum
for
the
asset,
while
a
drop
under
the
channel
may
spell
a
bearish
outcome
instead.
Now,
here
is
a
chart
that
shows
how
the
parallel
channel
that
Polygon
has
been
consolidating
inside
has
looked
like
over
the
past
month:
channel
that
the
price
of
the
asset
has
been
stuck
inside
in
recent
weeks
|
Source:
@ali_charts
on
X
From
the
above
graph,
it’s
visible
that
Polygon
has
been
stuck
in
consolidation
inside
this
parallel
channel
since
the
cryptocurrency
crash last
month.
The
asset
has
made
some
attempts
at
the
upper
level,
but
so
far,
all
of
them
have
failed,
with
the
coin
unable
to
find
any
break.
MATIC
is
currently
floating
near
the
level,
so
another
retest
may
be
coming
up
soon.
Related
Reading
If
the
Polygon
price
surges
above
the
channel
this
time,
it
may
enjoy
some
sustained
bullish
momentum.
“A
breakout
above
$0.76
could
trigger
a
17%
surge,
pushing
$MATIC
to
$0.88!”
notes
Ali.
This
price
target
is
based
on
the
fact
that
the
crash
last
month,
which
threw
the
asset
into
this
consolidation,
occurred
starting
from
around
that
level.
Given
this
potential
retest
of
the
upper
line
of
the
channel,
it
now
remains
to
be
seen
how
the
cryptocurrency
performs
in
the
coming
days.
MATIC
Price
Polygon
almost
touched
the
$0.76
upper
level
of
the
channel
yesterday,
but
the
coin
has
since
observed
a
pullback,
and
it’s
now
back
down
to
$0.72.
like
the
price
of
the
asset
has
continued
to
move
sideways
recently
|
Source:
MATICUSD
on
TradingView
Featured
image
from
Shutterstock.com,
charts
from
TradingView.com
Go to Source
Author: Keshav Verma
