MATIC jumps 12% to a 3-week high of $1.42; strong price corrections ahead?

• The MATIC/USDT logged 12% gains on Friday.
• The move pushed Polygon’s native token to a 3-week high near $1.42.
• MATIC still has bullish steam left for another rally on the back of an impending golden cross formation.

KOLKATA (CoinChapter.com) – MATIC started the weekend on a bullish note after traders pushed Polygon’s native token up 12% out of its sideways stagnation. The move resulted in the MATIC/USDT pair reclaiming the 3-week high of $1.42 in the early morning London session.

Sellers showed up for booking profits off the top. However, RSI posted a 2-week uptrend implying that Polygon’s native blockchain asset can still rally higher. Also, the MATIC/USDT pair gave off bullish vibes amid an impending golden cross formation.

Related: MATIC rebounds 12% amid Bitfinex listing, Osprey’s Polygon Fund launch

MATIC Technical Setup: Golden Cross And Next Target $1.70

Bullish bets on the Polygon token peaked after traders anticipated an upcoming golden cross scenario for MATIC. Golden crosses are bullish setups where the 50-day moving average (MA) crosses over the 200-day moving average (MA). Nonetheless, exponential moving average (EMA) indicators serve better in golden cross calculations.

The pair’s 50-EMA (red wave) is on the verge of crossing over the 200-EMA (blue wave).

Golden cross occurrences have resulted in extremely bullish outcomes for MATIC traders. For instance, a golden cross set up on August 4 preceded a month-long rally in which MATIC rose from lows near $1.03 and added 43% gains topping at $1.8 on September 5.

Related: MATIC mooning towards record highs as Polygon furthers entry into DeFi space

A similar scenario is about to take shape. In the event of another bullish wave, buyers will first attempt to reclaim the resistance at $1.50 and then would head straight for $1.70. The Polygon token closing above $1.70 will open the doors to $2.132, with $1.9 acting as a significant price barrier in between.

It’s a great opportunity for investors looking to ride the wave until the Polygon token takes out its previous all-time high of $2.8. However, even for swing traders looking to make solid profits over the short term, now is the time to place some buy bids.