One analyst explained how a buy signal was formed in the price of Polygon (MATIC), which could lead to the asset rebounding towards this price target.
Polygon is currently displaying a TD sequential buy signal.
new post At X, analyst Ali discussed the Tom Demark (TD) sequential signal forming on the MATIC price chart. Here, TD Sequential refers to an indicator in technical analysis that is commonly used to pinpoint where a reversal in the value of a particular asset is likely.
This indicator consists of two stages, the first stage is known as “Setup”. At this stage, up to 9 candles of the same polarity are counted, at the end of which the price can be assumed to have reached a reversal point.
Naturally, if the candle leading to the completion of the setup had been red, the reversal would have been in an upward direction, while the green candle would have hinted at a potential high for the asset.
Once setup is complete, the second phase called “Countdown” begins. This phase works similarly to the setup, except that it lasts for 13 candles instead of 9. After 13 candles of the same polarity have also entered, the price can be considered to have reached another reversal point.
Polygon recently completed the previous type of TD Sequential phase. Below is a chart shared by Ali showing the formation of the TD Sequential signal for MATIC daily price.
The recent pattern forming in the 1-day price of the cryptocurrency | Source: @ali_charts on X
As shown in the graph above, Polygon daily price has recently completed a TD Sequential setup with a downward trend. This suggests that the asset may currently be at a potential bottom.
“If MATIC stays strong above $0.87, it could bounce back to $0.95 or $1!” The analyst says: A potential upside to the former of these targets would imply an increase of over 8% from current prices, while an increase to the latter level would imply growth of nearly 14%.
Now, it is yet to be seen how Polygon price will develop from here and whether the TD Sequential buy signal will hold.
matic price
The past few weeks have been bad times for Polygon investors, as the price of the cryptocurrency has fallen from around $1.3 to the current $0.87 level, a decline of over 33%.
The chart below shows what the MATIC value has been trending over the past month.
Looks like the price of the asset has plunged over the past month | Source: MATICUSD on TradingView
In this downward trajectory, the TD Sequential buy signal could perhaps at least be a ray of hope for Polygon holders.
Featured image from Shutterstock.com, chart from TradingView.com
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