Polygon (MATIC) has emerged as one of the standout performers in today’s cryptocurrency market, ranking third among the top-100 cryptocurrencies by market cap as of August 21. With a 9% gain over the last 24 hours, this recent surge is only outpaced by TRON, associated with Justin Sun, which increased by 12%, and BitTorrent, which saw a 22% rise.
The past week has been particularly remarkable for MATIC, accumulating a significant 23% increase in its value. This bullish momentum has positioned Polygon at a pivotal point from a technical analysis perspective. According to crypto analyst World of Charts, Polygon has successfully broken free from a downtrend that has persisted for over six months. This breakout has led the analyst to project that MATIC could potentially soar towards the $1 mark.
Since mid-March, Polygon’s price has been confined within a descending channel, characterized by two parallel downward-sloping trend lines. This pattern, typically indicative of consolidation where the price makes lower highs and lower lows, is usually seen as bearish in a downtrend but can signal a reversal if a breakout occurs.
On August 20, Polygon made a decisive move by breaking out from this descending channel, sending a major bullish signal that suggests a potential end to its prolonged downtrend. This breakout is significant as it not only reflects a shift in market sentiment but also sets a new path for future price targets.
The breakout point was identified at approximately $0.44, and following this breakout, the price is projected to rise by more than 143%, according to the analyst. Such a rally would push MATIC’s price above the $1.10 mark, with World of Charts remarking that a successful breakout could lead to a massive recovery towards the $1 range in the coming days.
For this bullish scenario to hold, it is crucial that the current post-breakout price level serves as a new support. If MATIC maintains its position above the descending trend line and successfully retests it, the bullish outlook could be confirmed. Conversely, if the price falls below the trend line once more, it might be considered a false breakout, potentially prompting a reevaluation of the bullish case.
Investors should also keep an eye on trading volume and market sentiment, as both are likely to play pivotal roles in sustaining the current upward momentum. Genuine breakouts are typically accompanied by an increase in trading volume, which can serve as further confirmation of the breakout.
Another potential catalyst for a Polygon rally is the upcoming migration from MATIC to POL, set for completion on September 4. This anticipated upgrade is expected to enhance the functionality of Polygon’s native token. POL will become the primary gas and staking token within the Polygon Proof-of-Stake (PoS) network, playing a critical role in its security framework.
At the time of writing, MATIC was trading at $0.4775.
 breaks a 6-month downtrend, surging 23% this week with projections to hit $1. Upgrades and bullish sentiment fuel optimism for its future.){kind=link}