Polygon (MATIC) Shows Bullish Signals: Potential 70-80% Surge Ahead?

• Polygon [MATIC] recently experienced a significant price drop within the last month.
• Despite high selling pressure, technical indicators suggest potential bullish momentum.
• A popular analyst predicts a substantial price increase could be on the horizon for Polygon.

Discover the latest insights on Polygon’s market movements and potential for a substantial bullish rally in the near future.

Signs of Bullish Momentum for Polygon

Recent data from CoinMarketCap revealed that MATIC saw a decline of over 18% in the past 30 days. Nonetheless, a positive shift was noted as the token appreciated by more than 2% in the last 24 hours, trading at $0.5652 with a market cap exceeding $5.5 billion. This positive trend hints at a potential upsurge in the token’s value.

Technical Indicators and Analysis

ZAYK Charts, a notable crypto analyst, identified a crucial pattern on the MATIC chart, indicating that the token is testing support within a bullish falling wedge formation. The daily green candle heightens the likelihood of a breakout, possibly leading to a price surge of 70%–80% soon. The Relative Strength Index (RSI) also shows a bullish divergence, further supporting this optimistic outlook.

Evaluating the Potential for a Bull Rally

On-chain data analysis suggests a favorable scenario for MATIC. The Market Value to Realized Value (MVRV) ratio significantly improved last week, indicating a bullish sentiment. However, MATIC’s increasing supply on exchanges reveals heightened selling pressure.

Observations of Key Market Players

Interestingly, the top crypto addresses have reduced their holdings in MATIC, possibly anticipating a price correction. Despite this, technical indicators like the Chaikin Money Flow (CMF) and the RSI are trending upwards. Additionally, the Moving Average Convergence Divergence (MACD) signifies a bullish crossover, corroborating the possibility of a price rise.

Conclusion

In summary, while Polygon [MATIC] has faced considerable selling pressure recently, several technical indicators present a promising outlook for a bullish rally. It is crucial for MATIC to surpass the $0.57 mark to sustain this momentum and potentially hit $0.6. Otherwise, a bearish intervention could see the price drop to $0.54. Investors should closely monitor these developments to navigate the market effectively.