With projections pointing to a potential 17% surge, all eyes are on cryptocurrency Polygon, as industry analyst, Ali, explains how a breakthrough could result in an impressive rally. The mechanism behind the prediction is a parallel channel pattern, popular in technical analysis (TA), and evidently at work within the recent weeks of Polygon’s performance.
In the intricate world of TA, a parallel channel is understood by two trendlines. The upper line seamlessly connects the tops of the asset, whilst the lower line orchestrates an equally fluid connection with the asset’s troughs. These two lines consciously border a region, a channel, within which the price fluctuates, habitually consolidating sideways.
Just as day follows night, each retest of the channel’s upper line may result in a sharp reversal to the downside, while the lower line stands as a dependable support structure that aids the coin to regain its progressive momentum.
The complex TA landscape features a myriad of channels, with some ascending and others descending, depending on whether the channel veers upward or downward. For our purposes, it’s a parallel channel, aligned with the time axis, that claims our attention. This suggests that consolidation within the channel happens at consistent top and bottom levels, constructing a seemingly predictable pattern.
As seen with other consolidation patterns in TA, a break outside of the trendlines of the channel often indicates a treading continuity in that respective direction. A surge above the pattern implies bullish momentum for the asset, conversely, a drop below the channel could bear the news of a bearish outcome.
Examining recent graphical data presents a visual tale of the parallel channel which Polygon has been operating within for the past month. The standard has been one of consolidation since the unfortunate crypto crash of last month.
There have been several attempts by Polygon toward the upper level of the channel. However, all as of yet have proven unsuccessful, with the coin unable to secure any substantial breakthroughs. Currently, MATIC is hovering near the upper level, hinting that another retest could be imminent.
The prediction from Ali suggests that if Polygon manages to rally above the channel on this next attempt, a prolonged bullish momentum could await. An ambitious breakout above the $0.76 mark could instigate a 17% surge, which could push MATIC to $0.88.
The proposed price target considers the impact of last month’s crash, which saw Polygon tumble into a period of consolidation. Given the potential retest of the channel’s upper line, all eyes are on Polygon’s performance in the upcoming days.
Polygon flirted with the $0.76 upper level of the channel yesterday, yet has since pulled back to $0.72. The price of the asset has continued to move sideways, setting the stage for the impending retest. The result of this retest could carry hefty implications for the future of Polygon and is keenly anticipated by all who follow the dynamic cryptocurrency world.
