Polygon (MATIC), the native token of the Polygon network, has been experiencing a roller coaster ride in terms of price performance over the past year. While much of the cryptocurrency market rallied to new yearly highs, MATIC struggled to keep pace, leaving many investors in the red.
TLDR
In a detailed analysis posted on the TradingView website, Bixley outlined a bullish case for the MATIC price. According to the analyst, the Polygon price is currently on a trend line just above the $0.7 mark, where the altcoin is currently trading.
For a breakout to occur, this trend line needs to be broken. While a failure to break the trend line could be bearish for the coin’s price, Bixley is optimistic that Polygon will succeed in breaking through, leading to a significant upward movement.
Bixley also drew comparisons between Polygon’s price performance and that of Ethereum in its early days. If this comparison holds true, the MATIC price could be poised for a substantial increase, particularly if it manages to break the trend line.
The crypto analyst outlined multiple price targets for Polygon once the breakout occurs. The first target is set at $1.2, which would represent a 70% increase from the current price level. Beyond that, Bixley expects the price to continue rising, with another target set at $5.4, representing a potential 650% increase. The most ambitious target is placed at $55, which would constitute an astonishing 7,800% price increase.
While Bixley’s analysis paints a highly optimistic picture for Polygon, another crypto analyst has pointed out a worrying trend in response.
This analyst shared a chart highlighting the formation of a death cross on the weekly chart for MATIC, which could indicate a bearish outlook for the price. The death cross, a technical pattern that occurs when a short-term moving average crosses below a long-term moving average, is often seen as a signal of a potential downtrend.
According to this contrasting analysis, the MATIC price could be headed for a steep decline, potentially dropping by as much as 70% from its current level. If this scenario plays out, Polygon investors could face even greater losses.
Despite the conflicting analyses, the recent price action of MATIC has shown some promising signs. In the last 24 hours, the Polygon price experienced a downtrend, followed by a consolidation phase around the $0.71 support level.
Subsequently, the price rallied sharply, surpassing the initial starting point of $0.7282 and moving into a clear uptrend characterized by higher highs and higher lows.
Technical indicators, such as the Alligator Indicator and the Fibonacci Retracement tool, suggest a potential trend reversal and bullish momentum for MATIC. Resistance levels have been identified at $0.738, $0.766, and $0.794, which could act as hurdles for further upside movement. However, the Money Flow Index (MFI) remains neutral, reflecting a balance between buying and selling pressures.
On the other hand, the Bollinger Bands Width (BBW), Chaikin Money Flow (CMF), and Rate of Change (ROC) indicators paint a different picture. The BBW indicates low volatility and a tight trading range, while the positive CMF suggests dominant buying pressure. The ROC, however, signifies minimal momentum in either direction, portraying a stable price movement.
Go to Source
Author: Oliver Dale
