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The Polygon price has poked it’s nose above the top end of its symmetrical triangle pattern. This could prove the trigger for MATIC to rally 30%.
MATIC is trading at $1.1360, up $0.022 (+2.00%).
Polygon currently holds 16th place on the list of crypto assets by market cap. However, its $7 billion value is only slightly higher than that of Theta, at $6.9 billion.
The Polygon price has traded broadly in step with the wider market over the last 7 days. A week ago, MATIC lost its horizontal support and traded below the 100-day moving average at $0.9453. However, the subsequent strength in Bitcoin and Ethereum has not only reversed the slide but is now starting to break through some important boundaries on the upside.
After setting an all-time high of $2.8988 on the 19th of May, Polygon collapsed 65% on the same trading day. Since that fateful session, the Polygon price has never closed outside of that range.
This has resulted in the formation of a descending triangle. The bottom is marked at $1.011, and the descending top line at $1.0980. If MATIC closes at its current price, it will mark the first daily finish outside the triangle pattern and considered a breakout.
Furthermore, the lower end also benefits from the support of the 100 DMA at $0.9890. Therefore, MATIC finds itself in a perilous situation. If the upside breakout is rejected, the Major support is not far below.
On that basis, Polygon is walking a tightrope. A close above the trend line should see the price accelerate towards the 50-day moving average at $1.4940.
However, a close below the 100 DMA would open the door to the May lows around $0.6800.
For now, the price action suggests the former. However, there is still plenty of game left to be played today, and until the daily candle is finalized, the breakout will not be confirmed.
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