Crypto analyst Ali Martinez has his sights set on a $1.82 price level for Polygon’s MATIC, noting a potential breakout. He mentions a conditional projection, suggesting that while the token is on the brink of a surge, certain criteria must be met for the anticipated rise.
Martinez identified a critical symmetrical triangle formation on MATIC’s chart, which could set the token on a path towards an initial target of $1.25. This technical pattern, characterized by converging trend lines connecting a series of highs and lows, indicated signs of a breakout from the upper trend line, potentially signaling the start of a new uptrend.
Despite the need for patience in price confirmation, MATIC has already shown momentum, breaking through the psychological $1 resistance in early January. However, data from Santiment suggests that patience may indeed be warranted, as exchange inflow and outflow dynamics could be indicative of a tense balance between accumulation and selling pressure.
At the time of writing, exchange inflow was reported at 165,000, with outflow closely trailing at 164,000. This proximity could highlight the heated context between MATIC accumulation and sell-off pressures. For a clear path to an uptrend, exchange outflows would need to surpass inflows. The Relative Strength Index (RSI) indicated that MATIC had good buying momentum.
The resistance level for MATIC was also discussed, with the RSI reading crossing the 50.00 midpoint, suggesting a lack of selling pressure that could halt the uptrend since the price rebounded from $0.96. However, a potential rejection could occur if the price continues to rise and reaches $1.06, at which point Polygon might pull back. Nevertheless, bulls appear to have converted the $1 resistance into support, potentially preventing the price from falling below this level in case of a retracement.
Furthermore, the Aroon indicator confirmed the possibility of a price drop for MATIC, showing a downward trend and indicating a weakening bullish momentum. Despite this, the medium-term Exponential Moving Average (EMA) suggested that the cryptocurrency‘s price has the potential to continue rising, as evidenced by the 20 EMA crossing above the 50 EMA.
