- Polygon (MATIC) registered a 29% gain on Wednesday, after a depressive week that saw it fall by 41.4%.
- Now, an analyst predicts that the rebound marks the beginning of a bull run for MATIC.
NEW DELHI (CoinChapter.com) — MATIC, Polygon’s native cryptocurrency, registered an upside swing on July 21, marking an end to a depressive week, which made its bulls hopeful for an uptrend. Now, an analyst on the strategy platform Tradingview.com affirms that the altcoin may rise by 30% from the current price level.
Polygon’s Price Chart
According to the analyst, MATIC prices have been undergoing a trend reversal since it was in an upswing with huge volumes. However, the Polygon crypto needs to breach immediate resistance with good volumes for the trend to continue.
Additionally, the analysis highlights that most oscillators and moving average indicators are bullish for MATIC, summarising a buy signal on MATICUSD.
Also included in the analysis is an observation regarding Money Flow Index. MFI is the volume-weighted adaptation of the Relative Strength Index, a price momentum oscillator. MFI is helpful for spotting reversals and failed signals. Mudrex observed Polygon’s MFI is moving upwards, which indicates a price reversal on the upside.
MATIC prices are trading above the 200-Day (Yellow) Moving Average trend line, indicating the altcoin is bullish in the long term.
Moreover, MFI for the Polygon cryptocurrency is now at 41.91, supporting the bullish forecast. However, prices remain volatile, as Wednesday’s momentum seems to be depleting. In addition, the 50-Day (Green) MA trend line is above MATIC prices, highlighting the short-term outlook is bearish.
MATIC breached the crucial resistance of $0.9. Moreover, if bulls can consolidate at this price level, MATIC will likely reach the next resistance at $1.085. A move like that will mean a jump of 30% from the altcoin’s current prices. Support for the cryptocurrency is at $0.68.
Meanwhile, MATIC’s Momentum Indicators
As MATIC prices jumped, the altcoin’s momentum indicators started a move towards bullish regions too. RSI for the digital asset moved up from July 20’s oversold value of 19.82 and is now at a neutral value of 41.86.
While a change in RSI value indicates a trend reversal for MATIC, MACD for the altcoin still struggles with the bears.
MACD is a trend-based momentum oscillator. As MATIC prices registered their highest single-day jump since May 25, its MACD began moving towards the bulls. However, the MACD line (difference 12-Day and 26-Day EMA) is currently infinitesimally above the MACD signal line (9-Day EMA of MACD), as the histogram shows.
Polygon, the Layer-2 scaling solution for Ethereum, has made several impactful partnerships.
Moreover, the blockchain firm is involved in Decentralized Finance, Apps (DApps), Decentralized Autonomous Organizations (DAO), and NFTs. As such, Polygon (MATIC) isn’t lacking in fundamentals.
At the time of writing, MATIC/USD was trading at $0.8814, down by 0.81% into the day.