Polygon’s MATIC token has gained more than 22% in the last four days. The sudden upswing has enabled the token to overcome resistance. MATIC could reach $2.80 if buying pressure continues.
After slicing through stiff resistance, Polygon’s native token, MATIC, appears to be catching up with the rest of the market. Technical indicators and on-chain metrics now indicate that prices may soon reach a new all-time high.
Polygon’s Rally Has Begun
Polygon has overcome significant resistance barriers and appears to be on track for new all-time highs.
MATIC has experienced bullish momentum in the last four days, increasing in market value by more than 22 percent. Prices have risen from a low of $1.52 on October 23 to a high of $1.86 recently.
The abrupt increase in pressure appears to have resulted from the breakup of a symmetrical triangle. Since April 26, prices have made a series of lower highs and higher lows, forming a consolidation pattern on MATIC’s daily chart. Breaking through the triangle’s upper trendline at $1.62 on Oct. 23 could have resulted in the uptrend resumed.
When the height of the triangle’s y-axis is added to the breakout point, it appears that Polygon is on track for a nearly 86 percent bull rally. As a result, additional buying pressure around current price levels could push MATIC to a new all-time high of $2.80.
While the odds appear to be in favor of the bulls, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model predicts no competition ahead. The only significant interest level is at $2, where 1,280 addresses have purchased more than 35.5 million MATIC.
Traders who have been losing money on long positions may try to break even as Polygon approaches $2. The possibility of increased selling pressure could slow the uptrend, preventing MATIC from breaking through this barrier and realizing its upside potential.
According to the IOMAP, the most significant support level beneath Polygon is $1.75. In the event of a surge in profit-taking, this support level could prevent prices from falling further. If it does break, the demand wall at $1.62 is likely to hold, allowing prices to recover.