One analyst explained how Polygon began to break away from its symmetrical triangle pattern. If a breakout is confirmed, a rally to this level may occur.
Polygon weekly price is on the verge of breaking a symmetrical triangle.
new post At X, analyst Ali talked about the pattern that is forming in the weekly price of MATIC. The pattern in question is called a “symmetrical triangle.”
As the name suggests, this technical pattern looks like a triangle. This formation has two main trend lines. The top is made by connecting a series of tops, and the bottom is made by connecting the bottoms together. The peculiarity of the pattern is that these two trend lines converge with approximately the same slope (this is why “symmetry” is in the name).
There are also other triangle patterns in technical analysis, such as ascending and descending triangles. For example, these patterns differ from symmetrical triangles in that one trend line moves horizontally, whereas a symmetrical triangle has both trend lines sloping.
As is usually the case with patterns like this, the upper trend line of a symmetrical triangle can act as a source of resistance, while the lower trend line can provide support.
A sustained breakout from one of these levels could lead to a continuation of the trend in that direction. Polygon’s weekly price was recently on the verge of such a breakout, according to Ali.
Below is a chart shared by an analyst at MATIC that highlights this potential break brewing.
Looks like the price has approached the upper trendline recently | Source: @ali_charts on X
As you can see in the graph above, Polygon’s weekly price recently surged towards the upper trendline of the symmetrical triangle pattern and appears to be attempting a breakout. “A sustained weekly candlestick close above $0.96 could push MATIC. It amounts to $1.73,” explains the analyst.
So far, Polygon appears to be well on its way to confirming this breakout, as its price has surged more than 19% in the last 24 hours. If the symmetrical triangle breakout actually holds, MATIC would need to rise another 66% from its current price for the target set by Ali to be met.
MATIC broke above the $1 level for the first time since April.
Polygon has enjoyed rapid bullish momentum over the past week as the price has now regained $1, a level the cryptocurrency has not reached since April.
The chart below shows the performance of the asset over the past month.
The price of the coin seems to have rapidly grown in recent days | Source: MATICUSD on TradingView
Last week, the asset rose more than 34%. The only cryptocurrency with better returns in the top 20 market capitalization list is Solana (SOL), with a return of around 47%.
It is currently unknown whether MATIC can sustain this rally, but if it can, a symmetrical triangle break would be confirmed and more surges would potentially follow.
Featured image by GuerrillaBuzz on Unsplash.com, chart by TradingView.com
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