An analyst explained that Polygon could see a potential bull rally to $1.73 if the cryptocurrency’s price is above this level.

Polygon Appears To Be Breaking Out Of A Symmetrical Triangle Currently

In a new post on X, analyst Ali talked about a multi-year Symmetrical Triangle that Polygon has been traveling inside. The “Symmetrical Triangle” is a pattern in technical analysis (TA) that, as its name already implies, looks like a triangle.

The pattern comprises two converging trendlines, with the upper line being made by joining lower highs in the price, while the lower level connects higher lows.

A feature of this pattern is that these two lines approach each other at roughly an equal (but opposite) slope. This is the reason why there is “symmetrical” in its name.

When the price trades inside the triangle, it tends to encounter resistance at the upper level. As such, tops can probably form at the line. Similarly, the lower line can act as a source of support, thus facilitating likely bottoms to take place.

If the asset breaks through either of these barriers, its price could probably see a sustained push in that direction. This means that breaks above the triangle can be bullish signals, while drops under it can signify that a bearish trajectory has taken over.

There are also other triangle patterns in TA, with two popular ones being the Ascending and Descending Triangles. These two patterns differ from the Symmetrical Triangle in that one of their trendlines is parallel to the time axis (meaning their lines can never have an equal slope).

Now, here is the chart shared by Ali that shows a Symmetrical Triangle pattern that the weekly price of Polygon has traded inside for the last couple of years:

As the graph shows, the Polygon weekly price has shown signs of a breakout from this Symmetrical Triangle pattern that it has been stuck inside for multiple years.

Since such breakouts have historically been bullish, this surge for MATIC could mean some sustained bullish momentum may be coming. This is only, of course, if the break truly gets confirmed.

“If MATIC can maintain a close above $0.96, it could signal the start of a bull rally, with a potential target of $1.73!” explains the analyst. From the current asset price, a run to this target would mean an increase of more than 78% for the cryptocurrency.

MATIC Price

After witnessing a break above the $1 mark, Polygon slipped yesterday as its price declined to $0.90. However, the coin has recovered above $0.97 in the past day.

This is above the $0.96 target set by the analyst, so if Polygon can continue to maintain above it now, the break might get confirmed for the asset.

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Filed under: Bitcoin - @ February 22, 2024 6:00 pm