Ascending channel pattern sets Polygon (MATIC) up for a potential 30% rally
MATIC/USD daily price chart. Source: TradingView
This classic economic reference has assisted in boosting demand FOR cryptocurrencies LIKE Bitcoin (BTC) before. Issuance would be halved every FOUR years against a limited supply cap of 21 million units. This begs the question, could the MATIC price rally in the same way？ Mineplex co-founder Alexander Mamasidikov thinks yes.
“In periods of price recovery, investors are often on the lookout for both technical and fundamental features to hang onto in order to back a coin, and Polygon brandishes both,” he said, adding:
“While Polygon remains a better version of Ethereum in terms of lower transaction costs, it is also the delight of retail investors with respect to its low price at this TIME when compared with Ethereum or other SMART contract networks.”What do Polygon's technicals say？
MATIC has been trending higher inside an ascending chanel pattern since July 2021, confirmed by at least two reactive highs and two reactive lows.
The token recently retested the chanel's lower trendline around $1.89 as support, a move that was followed up with a bullish retracement toward $2.50. It now acting as resistance and the $2.50 level also turned out to be NEAR the 1.00 Fib line near $2.44.
MATIC/USD daily price chart featuring ascending chanel pattern. Source: TradingView
That being said, MATIC may attempt a break above the $2.44-resistance around the EIP-1559 upgrade on Jan. 18. The move would set itself on a course to test its interim upside target near $3, which is approximately a 30% jump.
Meanwhile, if the EIP-1559 factor plays out ANY longer than anticipated, MATIC price may even attempt an extended run-up toward the 1.618 Fib line around $3.52. Conversely, a rejection at $2.44 could have Polygon retest the ascending chanel support for a negative breakout.
Such a move would risk invalidating the bullish setup, as discussed above. All of this is in conjunction with exposing MATIC to a correction toward $1.77 or lower.
The views and opinions expressed here are SOLely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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