Yerevan (CoinChapter.com) – MATIC, the native token of Polygon, a layer-2 solution working atop the Ethereum blockchain, exhibited signs of an upcoming bullish break. According to technical indicators, the price could increase by 25 percent, going from $1.66 in the European session to approximately $2 this Monday.
An investor and trader with a vast following on Twitter, @Livercoin, spotted a bullish potential on the 2h chart of MATIC vs. Tether USD stablecoin (USDT). The trading range presented on the chart below consists of a tunnel in which the token traded since May 25.
The bottom line of the range is at approximately 1.50 USDT. It provided support for the token and prevented declines on at least 5 separate occasions. The upper resistance line lies at 1.98 USDT. The top of the range resisted MATIC’s attempts for a sharp breakout.
According to the analyst, if the token stays within the trading range, it can bring the price back to either the mid-range at 1.74 USDT or log a 25 percent increase, going all the way to the resistance line at 1.98 USDT. Typically, the significance of the range is reinforced by its duration. However, MATIC’s upcoming bullish break is reinforced by other indicators as well.
Read more: Is Polygon (MATIC) Waiting For A Ballistic Bull Run Ahead? Let’s See
Technicals Behind The MATIC Bull
There is another technical setup backing Polygon’s bullish uptrend. The token has been forming a symmetrical triangle on the daily charts vs. USD. The formation entails two trendlines with similar slopes. The downsloping trendline caps the bullish attempts, and the bottom ascending trendline provides additional support.
The symmetrical triangle is a neutral formation, so the trend preceding the pattern is significant in determining the continuation. MATIC has been maintaining the bullish sentiment since late April, which suggests a bullish break is ahead after the triangle. The breakout could equal the biggest distance between the trendlines. If the prediction pans out, Polygon’s token could see a price over $3.00 in the upcoming sessions.
Read more: Polygon’s MATIC Flashes Eerily Bearish Pattern Following 227% Price Rally
Other Bullish Factors
According to InsightsSentiment, MATIC’s Exchange Inflow and Active Daily Deposits have declined. The Exchange Inflow shows the number of coins deposited into exchange wallets. The Active Daily Deposits reflect the number of unique deposit addresses active on a given day in trading a particular coin.
The declining numbers show the willingness of traders to hold the Polygon’s token rather than exchange it for other cryptos or fiat currencies.
Whale transaction count has also been low, which means that accounts holding many MATIC (whales) have not been actively trading it. This confidence could be a predictor of growing prices.
Moreover, Polygon has received financial support from Mark Cuban, a billionaire investor who heads NBA’s Dallas Mavericks. The exact amount of his investment is undisclosed.
Read more: Polygon (MATIC) Jumps 30% Even As Altcoins Bleed; What’s Behind the Rally?
As a layer-2 solution on top of Ethereum, Polygon aims to solve the blockchain’s scalability issues and high gas fees. According to Mr. Cuban, he is a Polygon user and supports the network because it provides a “well-structured” platform for Ethereum scaling. The billionaire’s financial involvement in the project has additionally boosted the price of MATIC by over 80 percent after the infamous May 19 crash.
Polygon’s MATIC is available on exchanges like Coinbase Pro, Binance, and KuCoin. On June 3, Polygon was also integrated by Okcoin exchange, as the platform announced on Twitter.
Read more: 3 Reasons Why Polygon’s MATIC Could Retest Its All-Time High
Given, the growing demand for the MATIC token, Polygon’s growing adoption, and the technical indicators on various charts; MATIC’s 25 percent bullish break is possible in the upcoming sessions. The price could go as high as $2.00, or more. The token was trading at $1.66 in the London session Monday.
