- Polygon price is respecting a bearish trend line for November.
- MATIC price sees bulls at ease as three ascending indicators are supporting the uptrend.
- With the correction, MATIC could see 100% upside potential and a $3.0 price target.
Polygon (MATIC) price is under some pressure, with the upside capped by a purple descending trend line being respected throughout November. With the Relative Strength Index still quite elevated, it looks that bulls are using the dips and corrections as a chance to average in for further longs in MATIC price action. Even if the current support element fails, bulls are in a comfortable driving seat with two other bullish trend elements backing their corner.
MATIC price sees no reason for an end of the uptrend
Polygon price saw this week the topside being respected again, with bulls unable to break above and break the bearish element standing in their way from further upside. Instead, MATIC price corrected further to the downside and made a new low for November around $1.51. Bulls did not sit quietly in a corner scared for what’s to come but instead bought in again with the buy-side volume elevated.
MATIC price sees proof of this by-side explosion in the Relative Strength Index (RSI) that is still quite elevated, even when MATIC price made a new low for the month. This shows bulls being very present and picking up MATIC around the 55-day Simple Moving Average (SMA). If that would not do the trick, bulls have the 200-day SMA, the green ascending trend line originating from July and backbone of this uptrend and last but not least, the monthly S1 support level between $1.30 and $1.25.
MATIC/USD weekly chart
With the bulls’ presence growing further by the day, expect a breakout anytime soon, with first the break of the red descending trend line that would w
ash out quite a lot of bears in the process. Following resistance, MATIC bulls would face between $2.1 and $2.5. Certainly, that last one falls in line with the monthly R1 resistance level and would prove to be a tough one to crack. Once through there, MATIC price could rally by 100% and target $3.00 in the process.
AltSeason Appears To Be On The Horizon, Will MATIC Price Make A Move Now?
Ever since the primitive crypto, Bitcoin is showcasing some signs of strength, many altcoins are also getting ready for a gigantic leap. MATIC price, woefully, initiated the current month trade on a bearish note following a descending channel. However, the past weekend emerged to be pretty bullish as the bearish divergence was flipped and Polygon price surged with a decent margin.
The asset amid the sideway trend had lost its spot within the top 20 crypto listing. However, the fresh spike made the asset enter the top 10 and in no time, Polygon could also enter the top 10 too. The price surged more than 11% and attained $1.866 slicing through the resistance levels at $1.76. However, the current MATIC price movement appears to be well on track for a massive leg up.
The analyst, The Wolf Of All Streets, marked the pattern followed by the asset ever since the MATIC price plunged more than 50% during the May crash. According to the pattern, the asset before pulling the next leg up always follows a downtrend channel. As Polygon breaks the downtrend line, it surges 75% to 80% before establishing yet another downtrend line.
Therefore considering Polygon may follow the same pattern for the third consecutive time, another 80% move may be imminent. The surge may uplift the MATIC price above $2.6 much close to its ATH at $2.68.However, the next resistance is around $1.95 to $2 with major resistance at $2.2. Until the asset remains above the $1.7 zone, Polygon is pretty bullish if the bears do not take over the control.
MATIC introduces new scaling solution Miden to solve Ethereum network congestion
- Polygon network announced the launch of an advanced zk based scaling solution that could potentially solve Ethereum’s network congestion.
- Polygon’s Miden virtual machine will offer faster validation as it improves the efficiency of the MATIC network.
- Polygon has generated over $610,000 in network revenue over the past week.
- Analysts are bullish on MATIC, set a target of $6.72 for the end of the current bull run.
Despite a drop in Ethereum transaction fees, the network suffers from congestion. MATIC network is addressing the congestion through its new scaling solution Miden.
Miden to boost MATIC utility in the latest update on Polygon network
Polygon Network prepares for a new update to tackle the congestion on the Ethereum network. The zero-knowledge (zk) rollup is compatible with Ethereum. Miden virtual machine supports arbitrary logic and transactions like other zk rollups.
The Miden virtual machine’s addition is an important step in overcoming technical challenges on the Polygon network. Polygon will offer developers the ability to compile smart contracts directly into Miden assembly.
Miden will be flexible, Ethereum-centric and support formal verification.
On-chain activity on the Polygon network has hit a high, generating $610,000 in revenue over the past week. Transactions on MATIC have exceeded ETH by over four times. With the launch of Miden, proponents expect a spike in utility and adoption of native token MATIC.
Polygon network has remained a layer-2 scaling solution for a long time, scaling services and solutions faster. MATIC has attracted developers and applications from the Ethereum network. MATIC offers higher risk-adjusted returns than Ethereum, making it a lucrative token for investors.
Analyst at the YouTube channel “Invest and Trade with Jaxx” is bullish on MATIC. The analyst has set a target of $6.72 for MATIC price before the end of the current bull run in 2021.
MATIC price struggles to find support, increasing risk of 15% correction
- MATIC price returns inside the rising wedge.
- Strong support for MATIC is near $1.30, but zero support exists below that value area.
- Market awaits buyers to step in and support price.
MATIC price continues to push lower, facing the same weakness affecting the broader cryptocurrency market. Significant support zones exist below, but failure to hold that support could trigger a sell-off.
MATIC must hold the $1.30 – $1.40 value area; a return above the rising wedge would re-initiate bullish sentiment
MATIC price performed a very bearish price action event last week by returning inside the rising wedge. That bearish price action has continued into the current week. Bears are testing one of the primary support zones at $1.50 and appear to gain control.
Below the $1.50 support zone is the final but most vital support level in the $1.30 value area. The 38.2% Fibonacci retracement, Senkou Span B, Senkou Span A, 2021 Volume Point Of Control and lower rising wedge trendline exist within the $1.30 to $1.40 value area.
As long as MATIC price can maintain a weekly close above $1.45, the threat of collapse can be eliminated. However, some warning signs in MATIC’s oscillators should be observed, specifically on the Composite Index.
The Composite Index has just crossed below its moving averages in neutral territory – usually a very bearish warning sign. However, the Relative Strength Index may mitigate any effect of that bearish signal. MATIC’s Relative Strength Index remains in a bull market territory and is up against a strong support level at 50, a level tested twice and held as support.
MATIC/USDT Weekly Ichimoku Chart
Failure to hold the support levels discussed could result in MATIC returning to the $0.80 value area. Any near-term bearish outlook would be nullified if MATIC can return and close above the rising wedge pattern.