Polygon (MATIC) has the potential to hit $ 3.50 later this year as it draws a pattern that begins to look like a bullish flag.
In detail, Bull Flags are bullish continuation patterns that emerge when the price consolidates after a strong bullish move. In doing so, the price tends to trend downward, leaving behind a sequence of higher lows and lower lows.
A breakout occurs when the price closes above the upper trend line (or resistance) of the flag. In other words, the price can rise as high as the height of the previous uptrend, also known as the flagpole.
So it appears that MATIC has been painting a similar pattern even since it set a record of $ 2.89 on May 17, following a run to the upside of $ 2 (the flagpole).
As a result, if the MATIC price breaks above the resistance of the flag decisively, it will shift its target up to about $ 2 above the breakout level. That would roughly put the Polygon token on its way to $ 3.50.
The bullish setup appeared when MATIC surged around 30% on Friday to hit a one-month high near $ 1.65.
Nonetheless, the cryptocurrency experienced a slight correction near said high, dropping around 4% in profit-taking sentiment among daily traders. Also, since the correction occurred right around the Bull Flag resistance, it raised the possibility of extended sell-offs in the future.
If a pullback occurs, you will risk dropping MATIC to its first weekly support line towards its 20-week exponential moving average (20-week EMA; the green wave) around $ 1,231. Meanwhile, further weakness could shift the target down to the 50-week EMA (the velvet wave) around $ 0.868.
Bulls have the advantage
In addition to the Bull Flag, MATIC painted a cup and handle pattern that presented the possibility of the cryptocurrency reaching $ 1.80 soon.
Twitter Trade MK2 stained the first bullish reversal indicator on the Polygon token daily price chart. It showed the price forming a rounded bottom (Cup) after a bullish move and then painting a descending channel range (Mango).
A subsequent breakout of the Mango’s trading range would indicate a bullish continuation. By doing so, the price points to an increase towards the level in a length equal to the depth of the Cup. As a result, MK2 Trading expects MATIC at $ 1.80 in the next sessions.
The latest episode of Polygon’s market buy came after Upbit, one of South Korea’s leading crypto exchanges by volume, additional MATIC pairs with your trading platform. Additionally, the exchange also included Solana and NuCypher pairs.
Solana was another prominent player on Friday with its native token SOL rising by more than 11.5%, while NuCypher’s NU rallied by more than 845% on Friday after Upbit’s announcement.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.