MATIC token price breaks above the double bottom price pattern in the daily chart. Upon retest, the price can touch the $2 mark.
Polygon (formerly Matic Network) is a layer two scaling option that Binance, Coinbase, and others have supported. This project is designed to increase the mass adoption of cryptocurrencies and solve the issues of scaling on multiple blockchains.
Polygon combines both the Plasma Framework and the proof-of-stake blockchain architecture. The Plasma framework proposed by Vitalik Buterin, co-founder and CEO of Ethereum, allows for the easy execution of scalable, intelligent contracts.
Let us now look at the technical analysis of Polygon cryptocurrency.
MATIC coin prices experienced an increase of buying pressure around $1 on the 27th of September. This resulted in a price increase of around 20% over the following week. The price action resulted in a bullish engulfing candlestick on the weekly chart.
Source - Tradingview
At the time of writing, Polygon cryptocurrency is at $1.29. Additionally, it has experienced a fall of 0.39% in the past 24 hours. In addition, the intraday trading volume of the coin fell by 10%, indicating coiling up before the breakout.
The price action indicates the retest of the bullish breakout of the double bottom pattern in the daily chart. Furthermore, the coin price is currently near the pattern's neckline with long wick candles indicating lower price rejection.
A bull run upon successful retest can face opposition near $1.6 and $2, posing some reversal chances.
MATIC crypto trades above all the crucial Exponential Moving Averages in the 4-hour chart. In addition, the EMAs maintain a bullish alignment. Thus, indicating solid underlying bullishness.
The MACD and signal lines are above the zero mark on the daily chart. Thus, generating a buy signal.
The RSI slope moves slightly above the central line in the 4-hour chart. However, the slope is moving sideways. Thus, the RSI indicates neutrality.
MATIC Token's technical analysis indicates that the price is at a very crucial stage. The successful retest of the bullish breakout of the double bottom pattern can lead to a bull run. However, traders might want to wait until the price exceeds $1.4 to avoid fake breakout possibilities.