- MATIC could soon rise towards $1.5 if a bullish breakout occurs
- Before MATIC hits $1.5, it needs to hit the charts above $0.54
Polygon [MATIC] investors have had a tough time lately, with the token’s price steadily falling on the charts. While this seemed troubling, MATIC could soon have a trick up its sleeve that could lead to its price reaching $1.5 in the coming weeks or months.
Polygon’s recovery plan
According to CoinMarketCap factsMATIC witnessed a double-digit price drop last month as its value plummeted by 16%. At the time of writing, the token was trading at $0.4233 with a market cap of over $4.2 billion, making it the 21st largest crypto.
The massive price drop caused a majority of investors to suffer losses. To be precise, at the time of writing, only 2% of MATIC investors had made a profit.
Source: IntoTheBlock
According to our analysis of Santiment’s data, MATIC’s weighted sentiment ended up in the negative zone.
When this happens, it indicates that bearish sentiment around a token is dominant in the market. However, its social volume peaked on August 8, reflecting its popularity in the crypto space.
In the meantime, ZAYK Charts, a popular crypto analyst, shared a tweet to draw attention to an interesting development.
According to the tweet, a bullish pattern formed on MATIC’s price chart. Similar patterns have appeared on the MATIC chart in the past, leading to bull rallies. Therefore, if history repeats itself, MATIC could soon register green numbers on its map. In fact, the rally could see the token reach $1.5.
Source:
The upcoming objectives of MATIC
Since the possibility of MATIC reaching $1.5 in the near term sounded ambitious, AMBCrypto took a closer look at the state of the token.
We found that investors bought MATIC. This was the case because the supply on the exchanges decreased slightly, while the supply outside the exchanges increased. However, the MVRV ratio remained low – a bearish sign.
Source: Santiment
Finally, the token’s Relative Strength Index (RSI) was in the oversold zone. This could increase buying pressure and in turn increase MATIC’s price.
The Chaikin Money Flow (CMF) also recorded a sharp increase as the token’s price reached the lower limit of the Bollinger Bands, raising the chances of a price increase for the altcoin.
Is your portfolio green? View the MATIC profit calculator
In the event of a bullish takeover, MATIC’s price could first reach $0.54. Since liquidations would rise sharply at that level, there would be chances of a near-term price correction.
A successful breakout above would allow the altco to target $0.6. However, if the bearish trend continues, the crypto could drop to $0.33.
Source: Hyblock Capital