Polygon's MATIC token is gaining strength.
Key Takeaways
- MATIC's price surged by nearly 11% at the opening of the daily trading session. It's since cooled off after meeting resistance.
- Further buying pressure could push prices to retest previous all-time highs.
- Polygon must post a decisive break through $1.66 before it can enter a rally.
Polygon’s MATIC token appears to have the bullish momentum it needs to resume its uptrend. Still, it must record a decisive close above resistance to confirm the optimistic outlook.
Polygon Tests Key Resistance
Polygon could be ready for new highs, but it needs to break resistance first.
The Ethereum scaling solution’s MATIC token opened Monday on a positive posture. Its price surged by nearly 11% to hit an intraday high of $1.62 and has since cooled off to $1.47.
Despite the significant gains it has posted, the asset has not been able to break through resistance. The upper trendline of a symmetrical triangle, which developed on MATIC’s daily chart since late April, remains the most crucial obstacle ahead.
For a confirmation of a bullish breakout from the consolidation pattern, MATIC will need to record a daily candlestick close above this supply barrier. If it successfully slices through $1.66, it could post an 85% rally toward the May 18 all-time high at $2.70.
This bullish price target is determined by measuring the height of the triangle’s y-axis and adding it to the breakout point.
The Korean crypto exchange Upbit listed Polygon’s MATIC token last week, which could give it the buying pressure it needs to post higher highs. A broader audience having access to trade the asset could act as the catalyst for a breakout. However, the bullish outlook is unlikely to be confirmed until a decisive close above $1.66.
A failure to break resistance could see MATIC drop to the $1.30 support floor. Although a retest of this level could present a key buying zone for market participants, any signs of weakness could result in a steep correction. The next critical support area sits at around $0.62.