- Polygon’s MATIC is on the verge of breaking out of its long-term downtrend.
- The price action appeared to be part of a relief rally for certain altcoins.
- Analysts commented on the asset’s outlook.
MATIC, the native token of the Polygon PoS chain, is far from its prime. While the broader cryptocurrency market is considered to be in a bull market, the asset has been stuck in a multi-month downtrend, trading at its lowest levels in two years.
However, even amidst the recession, MATIC is now showing signs of a rebound and is at risk of breaking out of its prolonged doldrums amidst some altcoin rallies.
Polygon’s MATIC jumps by over 20%
Over the past few days, the MATIC price chart has been in an ascending parabolic pattern, with the asset price jumping more than 20% from a range of around $0.39 on Friday, August 16 to a range of $0.48 at the time of writing.
Interestingly, this rally has continued over the past 24 hours despite major crypto assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) posting losses. At the price range above $0.48, CoinMarketCap According to data, Polygon’s MATIC is trading at a premium of 8% over the last 24 hours.
But MATIC isn’t the only one challenging the majors. Assets like Tron (TRX), Cardano (ADA), and Avalanche (AVAX) have seen 24-hour gains of 5%, 4%, and around 6%, respectively. The reasons for these separate trends are unclear, though, with one analyst attributing it to seller exhaustion.
Nonetheless, amid the rally, several analysts have pointed out that MATIC is trying to break out of its recent months’ downtrend on the daily candlestick chart that began in March 2024.
Can Polygon’s MATIC successfully find a breakthrough?
For a successful breakout, Polygon bulls would like to see today’s candle close positively and the subsequent candles not fall back to the trend line. However, Polygon faces short-term resistance at the psychological price of $0.5. How the asset reacts at this level could determine whether the run can continue or if the market’s excitement is short-lived.
Commenting on the recent rally in MATIC, renowned cryptocurrency analyst Ali Martinez warned that a TD sequential sell signal could appear on the asset’s hourly candlestick chart, indicating that a short-term correction is likely to occur.
Meanwhile, looking at the weekly chart of MATIC, Alex Murrer suggests that the asset could have one last drop to the $0.29-0.32 range before soaring to new highs.
Most analysts believe that if MATIC shows an upward trend, the asset price is likely to surge to at least $1.
On the other side
- Potential fake profits could result in a situation where MATIC seemingly deviates from the trend and then reverses soon after.
- Cryptocurrency market rallies that aren’t led by Bitcoin are often unsustainable.
Why this matters
Polygon MATIC’s recent struggles have left most asset holders with a deficit. However, recent price action suggests that a potential reversal could be in the works for this disastrous trend.
To learn more about Polygon’s MATIC, read:
Is Polygon (MATIC) on the road to recovery after hitting a yearly low?
Coinbase joins the debate over Ethereum’s viability. Read more:
Why Fears of Ethereum’s Downfall Are Vastly Exaggerated: Coinbase