The cryptocurrency market is officially in a consolidation state. Many crypto enthusiasts don’t know which token to buy and await further market movement. Polygon MATIC always received a warm welcome from the crypto sphere, despite its corrections in prices every now and then. Today, on the other hand, technical analysts managed to spot an interesting formation for the Polygon MATIC price. Should you really buy MATIC in anticipation of higher prices?
What is Polygon Matic Crypto?
Polygon is a project that aims to bring Ethereum’s blockchain to the masses. In order to do so, it provides an easy “plug-and-play” solution to crypto projects. This not only increases the demand for Ethereum but also for the entire crypto industry. Using Polygon, one can create optimistic rollup chains, ZK rollup chains, stand-alone chains, or any other kind of infrastructure required by the developer.
Polygon effectively transforms Ethereum into a full-fledged multi-chain system. That’s why it was given the attribute of the “Internet of Blockchains”. This multi-chain system is related to other projects such as Polkadot, Cosmos, and Avalanche with the advantages of Ethereum’s security, smooth ecosystem, and openness.
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Polygon Price Prediction – Spotting an Ascending Triangle?
Looking at figure 1, we can clearly notice an ascending triangle. This is considered a continuation pattern of the previous trend. Since the price rose between April 2021 and May 2021, the upward trend could continue. The big explosion in MATIC price could even happen before the end of the year because we have been in the last third of the triangle for a few days now (formations usually erupt in the last third).
Since we are currently on the lower trend line, MATIC price could soon be heading for the resistance of +/- $ 2.44. Either we break the resistance and break out or we go again towards the trend line.
Can MATIC Break its Resistance Level?
If we look at the volume, we can see that as the price increases, it has a steadily increasing volume as well. As soon as there is a correction, the volume steadily decreases. This means that we are in an uptrend. Additionally, since the volume is very low at the moment, we might see a pump. This pump could only go as far as the $ 2.44 resistance for now or we might break out right away. This would also make sense when we look at recent highs. These are steadily higher. So we would expect a new higher high, which would also mean an outbreak.
Of course, there are two very important factors that also contribute to MATIC’s resistance break, which are the specific fundamentals of the Polygon project and the overall cryptocurrency market’s sentiment. If the crypto market recovers and becomes bullish, MATIC’s price will definitely increase in tandem. Also, if we hear positive news in the market regarding the Polygon project, MATIC’s price would increase.
