- MATIC might soon rally towards $1.5 if a bullish breakout happens
- Before eyeing $1.5, MATIC has to break above $0.54 on the charts
Polygon [MATIC] investors have been having a tough time lately, with the token’s price declining steadily on the charts. Now, though this seemed troubling, MATIC might soon have a trick up its sleeves, one which might result in it touching $1.5 in the coming weeks or months.
Polygon’s recovery plan
According to CoinMarketCap’s data, MATIC witnessed a double-digit price decline last month as its value plummeted by 16%. At the time of writing, the token was trading at $0.4233 with a market capitalization of over $4.2 billion, making it the 21st largest crypto.
The massive price drop pushed a majority of the investors into losses. To be precise, only 2% of MATIC investors were in profit at press time.
Source: IntoTheBlock
As per our analysis of Santiment’s data, MATIC’s weighted sentiment went into the negative zone.
Whenever this happens, it indicates that bearish sentiment around a token is dominant in the market. However, its social volume spiked on 8 August, reflecting its popularity in the crypto space.
In the meantime, ZAYK Charts, a popular crypto analyst, shared a tweet highlighting an interesting development.
As per the tweet, a bullish pattern formed on MATIC’s price chart. Similar patterns have emerged on MATIC’s chart in the past, which have resulted in bull rallies. Therefore, if history repeats itself, then MATIC might soon register greens on its chart. In fact, the rally could allow the token to hit $1.5.
Source: X
MATIC’s upcoming targets
Since the possibility of MATIC touching $1.5 in the short term sounded ambitious, AMBCrypto took a closer look at the token’s state.
We found that investors have been buying MATIC. This was the case as its supply on exchanges somewhat declined while its supply outside of exchanges increased. However, its MVRV ratio continued to remain low – A bearish sign.
Source: Santiment
Finally, the token’s Relative Strength Index (RSI) was resting in the oversold zone. This might help increase buying pressure and, in turn, lift MATIC’s price.
Its Chaikin Money Flow (CMF) also registered a sharp uptick while the token’s price touched the lower limit of the Bollinger Bands – Increasing the odds of a price hike for the altcoin.
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In the event of a bullish takeover, MATIC’s price might first touch $0.54. Since liquidations would rise sharply at that level, there would be chances of a short-term price correction.
A successful breakout above that would allow the altcoin to target $0.6. However, if the bearish trend continues, then the crypto might plummet to $0.33.
Source: Hyblock Capital
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