In a recent market review session, an analyst from More Crypto Online suggested Polygon (MATIC) is bound to hit $1.7 in the short term based on current dynamics.

The analysts pinpointed the critical support levels for MATIC at 49.5 cents and 58.2 cents. According to them, these figures are crucial as they provide a baseline for where the price could stabilize and potentially rebound. The experts outlined a scenario where if prices were to dip below $0.582, it could invalidate the current market optimism surrounding Polygon, signaling a bearish trend.

Furthermore, they explored the concept of Wave 2 in MATIC’s price action, discussing the uncertainties of whether this wave has bottomed out or if the market should brace for another drop. This part of the analysis is vital for investors and traders who rely on technical patterns to make informed decisions.

Amid these uncertainties, the possibility of an ending diagonal was also brought up, suggesting a setup that might lead to a higher climb in the fourth wave. According to the analysts, this technical formation could be pivotal for Polygon, whose zkEVM recently faced issues, as it tries to regain momentum in a fluctuating market environment. 

Looking ahead, the analysts set ambitious targets for MATIC, whose addresses recently surpassed 1 million, pointing out a potential rally to even $213. These projections are based on the current market dynamics and the assumption that MATIC can maintain its critical support levels and complete its technical patterns. The analysts also highlighted the importance of filling in the “white count,” which describes missing data points in technical analysis. This step is essential for confirming bullish or bearish market signals, urging traders to wait for these confirmations before making decisive market moves.

Polygon Price Review: How Is Matic Doing Today?

Looking at an in-depth analysis, we notice that the price action has formed a Rising Wedge pattern. This is a bearish pattern, suggesting that if the price breaks down from the wedge, the downtrend may continue. On the other hand, looking at indicators, the Money Flow Index (MFI) is at 74.69, which is near the overbought threshold of 80. This could suggest that the price might start to retreat as buying pressure diminishes.

4-hour MATIC/USD Chart | Source: TradingView

Conversely, the volume oscillator is at -7.11%, indicating that volume has decreased in the most recent period compared to the prior period. This decrease in volume might support the bearish divergence as the price increases, suggesting a potential reversal. Based on stats from CoinMarketCap, Polygon was priced at $0.7555 as of 12:26 p.m. UTC, a 3.88% increase over the last day.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.