Classic triangle indicator projects Polygon at $3 as MATIC rallies over 12% in 24 hours

Polygon's bullish technical setup eyes a price target above $3. Image from Logowik.com
Polygon’s bullish technical setup eyes a price target above $3. Image from Logowik.com

Key Takeaways:

  • Polygon (MATIC) prices are in an ascending triangle pattern on the weekly charts.
  • Polygon launched a hackathon event for Indian developers, aimed to promote Web 3.0.

NEW DELHI (CoinChapter.com) — Polygon enjoyed a boost in its prices as its native token MATIC jumped 17.6% between low ($1.510) to high ($1.777) levels on Nov 23.

MATIC continued to gain on Wednesday, gaining 11.66% before prices pared. Meanwhile, the Polygon token’s prices have formed a bullish technical chart pattern in an ascending triangle on its weekly charts. The pattern forecasts an upside move to $3.19, an upside of 82.3% from current price levels.

A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows forms an ascending triangle pattern. Volume helps determine if a breakout is strong. As such, a breakout on the upside with low volume is very likely to fail, resulting in a pullback.

Polygon prices are moving in an ascending triangle pattern on the weekly charts. Source: MATICUSD on Tradingview.com
Polygon prices are moving in an ascending triangle pattern on the weekly charts. Source: MATICUSD on Tradingview.com

The height of its thickest section determines the price target in an ascending triangle. Thus, for MATIC’s technical setup, the price target would be $3.195 if the pattern holds and MATIC breaks out with high volume.

Polygon’s BUIDL IT 2k21 Hackathon went live on Nov 19. The hackathon is exclusive to Indian developers, inviting new projects on the Polygon Network. Furthermore, the event aims to promote Web3.0 culture among Indian developers.

MATIC Daily Price Charts

MATIC started Nov 24 with a 2.6% drop. However, prices recovered as the day progressed before dropping again. In addition, the Polygon token’s Tuesday jump moved the token above its 50-day moving average trendline, making MATIC bullish across all time horizons after nearly a week.

Also Read: MATIC price plummets 13.75% as strong bearish momentum expected in Polygon market.

Moreover, Nov 23’s gains also pushed MATIC above the Nov descending trendline. At present, Polygon has immediate resistance at $1.877. However, if prices continue to move upwards, MATIC would likely test resistance at $1.98, near the upper trendline of the weekly chart’s ascending triangle.

Once MATIC breaks above $1.98, bulls would likely target $2.11 resistance before trying to reach the ascending triangle target of $3.19

MATIC broke above the Nov descending trendline. Source: MATICUSD on Tradingview.com
MATIC broke above the Nov descending trendline. Source: MATICUSD on Tradingview.com

On the other hand, if prices go into a downtrend, MATIC has immediate support from its 50-day MA line at $1.639. Sustained selling pressure could see prices reach the $1.52 level. However, if bears get a firm grip on MATIC price action, support from 200-day MA line at $1.402 could come into play.

Meanwhile, trend-based momentum oscillator MACD continues to be bearish for the Polygon token. However, MACD histogram bars indicate that the MACD line (difference of 12-day and 26-day EMA) is moving upwards towards the MACD signal line (9-day EMA of MACD).

Polygon's MACD looked poised for a bullish crossover. Source: MATICUSD on Tradingview.com
Polygon’s MACD looked poised for a bullish crossover. Source: MATICUSD on Tradingview.com

The histogram plots the difference between the MACD line and its signal line. With the MACD line moving up, a bullish crossover seems on the cards for MATIC, which would further propel its prices.

Moreover, the relative strength index for MATIC is neutral, clocking 52.83 on the daily charts. As such, MATIC has room to continue its uptrend.

Polygon’s Hackathon Goes Live

Polygon has collaborated with Devfolio to launch the BUIDL IT 2k21 hackathon event. The hackathon is India’s first Polygon-native event and aims to lay the foundation for Web 3.0 development. Actor Kunal Kapoor, Paytm Founder Vijay Shekhar Sharma, and Polygon co-founder Sandeep Nailwal kicked off the event.

Mr. Sandeep Nailwal described the event as a platform ‘for the Indian developers’ ecosystem to support a new wave of builders in their decentralized Web3 development.’

Both Web 3.0 veterans and newbies can participate in the event, where they will compete to win prizes worth more than $100,000. The competitions would include, among others, Best DeFi Project, Best NFT/gaming project, Best Tutorials, Pool prizes, Best Tooling, etc.

Also Read: MATIC jumps 17% as Polygon PoS chain processes 1 billion transactions.

Furthermore, the best projects would get a chance to raise venture capital from investors like Sino Global, Elevation Capital, Sequoia Capital, among others. In addition, firms like Chainlink, Covalent, Alchemy, Figment, Crust, OpenZeppelin, Funfair Games, CoinDCX, Wazirx, and Agri10x are sponsoring the event.

Meanwhile, Exodus, a multi-asset software wallet, announced integration with SportX, a prediction market DApp built on the Polygon blockchain. As a result, Exodus could directly send the returns of the bets placed on SportX to users’ wallets.

In addition, users can also exchange their Polygon USDC with any of the 138 digital currencies available on Exodus. The digital wallet also plans to introduce additional features soon, allowing wallet users to stake MATIC from their wallets.

At the time of writing, MATIC was trading $1.72, down 1.2% on the day.

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