MATIC price is traversing an incredibly bullish pattern, which triggered a massive bull run on October 29. However, the buying momentum fell short, and the flash crash on November 11 brought Polygon back to the breakout point, where it will give the uptrend another go.
MATIC price set up four equal highs and three higher lows since June 7. Connecting these swing points using trend lines shows Polygon is traversing an ascending triangle pattern. This technical formation forecasts a 150% uptrend to $4.32, obtained by adding the distance between the triangle’s base and the first swing low to the breakout point at $1.73.
MATIC price breached the horizontal resistance barrier at $1.73 on October 27 and rallied 28%, but a failure to sustain higher combined with November 11 flash crash knocked Polygon back to retest $1.73.
The Momentum Reversal Indicator (MRI) is flashing a yellow ‘up’ arrow on the daily chart, suggesting that red candlestick formation could result in a green ‘one’ buy signal. This formation suggests a trend reversal in the form of a one-to-four candlestick upswing.
Therefore, the current position for Polygon seems like a good place to accumulate.
On its way to $4.32, MATIC price will face the $2.21 resistance barrier, a breach of which opens the path to a new all-time high.
While things look grim for MATIC price due to the daily close below $1.73, a failure to recover will worsen its situation. A daily close below the $1.56 support level will invalidate the bullish thesis for Polygon.
This move could trigger further descent for MATIC price to the $1.45 or $1.22 demand barriers.
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