MATIC makes interesting moves north: What price should you target?
- MATIC may rise to $1.82 but it could take a while.
- If the exchange outflow outpaces the inflow, the token may get a clear bullish path.
Polygon [MATIC] has its eyes on $1.82, according to crypto analyst Ali Martinez. However, the analyst attached one condition to the projection despite affirming that the token was close to breaking out.
In his post on X, Martinez noted that MATIC had formed a symmetrical triangle that could set it for a first target of $1.25.
#Polygon is at the cusp of breaking out from a significant symmetrical triangle. Be patient! Let the pattern fully develop, as the initial target for $MATIC is set at $1.25, followed by a potential move towards $1.82! pic.twitter.com/F9eHkZe5q3
— Ali (@ali_charts) January 1, 2024
A symmetrical triangle is a technical pattern characterized by two converging lines connecting a series of highs and lows. From the chart above, the Polygon native token showed signs of breaking out from the upper trendline. This indicates the start of a new bullish trend.
Potential gains call for calm
Though Martinez noted that hitting the price would require patience, MATIC already seems to be in the process. In the early hours of the 2nd of January, AMBCrypto observed that the token had surged past the $1 psychological resistance.
However, our analysis of Santiment’s data showed that the analyst could have a point as regards patience. This was because of the exchange inflow and outflow.
At press time, the exchange inflow was 165,000 while the outflow was 164,000. Such closeness depicts a heated context between the accumulation of MATIC and selling pressure. For the token to get a clear road to a bullish path, the exchange outflow has to outpace the inflow.
Per the price action, the RSI showed that MATIC had good buying momentum. This was because the reading had crossed the 50.00 midpoint. Also, there has not been any selling pressure to halt the uptrend since the price reversed at $0.96.
However, if the price continues to rise and hits $1.06, it could be rejected. If this happened, Polygon might fall back. But bulls seem to have turned the $1 resistance to support. So, if the price retraces, it could evade dropping below the $1 mark.
The buying spree continues
Furthermore, the Aroon indicator confirmed that MATIC’s price might drop. As of this writing, the Aroon Up (orange) trended downward indicating a weakening uptrend. Though the Aroon Down (blue) followed the same direction.
For the mid-term, the Exponential Moving Average (EMA) showed that the cryptocurrency price has the potential to keep rising. This was because the 20 EMA (cyan) had crossed over the 50 EMA (yellow).
In addition, AMBCrypto also noticed that the 90-day Mean Dollar Invested Age has been increasing. This metric is the average age of all tokens on the blockchain weighted by the purchase price.
How much are 1,10,100 MATICs worth today?
So, the increase was a sign that more buyers were coming into the Polygon ecosystem.
If this also stays the same, the buying pressure might send MATIC higher than the price Martinez predicted.