MATIC Price Prediction: Polygon Bull Flag Breakout Aims for New Record Highs
- Polygon must hold at the 100 SMA to pave the way for recovery.
- The bull flag on the 12-hour chart could see MATIC rally 108% to $3.
Polygon downside is far from over based on the retreat within the descending parallel channel. The correction emanates from the rejection suffered at $2.4 in the last week of May. Meanwhile, the 100 Simple Moving Average (SMA) currently offers the much-needed support on the 12-hour chart.
Polygon uptrend resumption depends on the bull flag
The 12-hour chart brings to light a bull flag, as highlighted. This bullish continuation pattern forms after a significant movement in price, followed by a consolidation period. The massive upswing makes the flagpole while the consolidation occurs in a descending channel.
To validate the flag pattern, the channel must not stretch past half the length of the flagpole. Therefore, the support at the 100 SMA is key to a bull flag pattern breakout materializing. Besides, bulls must from now henceforth focus on sustaining Polygon above the flag’s middle boundary.
MATIC/USD four-hour chart
At the time of writing, Polygon trades at $1.33 as bulls look forward to an upswing above the middle boundary. If the bull flag breakout emerges, Polygon may lift by 108% to $3. Note that this prediction is measured by taking into account half the length of the flagpole.
Looking at the other side of the fence
The In/Out of the Money Around Price (IOMAP), an on-chain model by IntoTheBlock, reveals immense seller congestion zones ahead of Polygon. The region between $1.42 and $1.46 is the most robust. Here, 5,000 addresses purchased nearly 86 million MATIC. It would be challenging to trade above this zone; hence, the impending breakout to $3 could be sabotaged.
Polygon IOMAP chart
On the downside, the support areas revealed are not as strong as the seller congestion zone mentioned above. The model directs our attention to the spot running from $1.29 and $1.33. Here, 129 addresses previously bundled up 44 million MATIC. If this support shatters, we expect Polygon to retest the anchors at $1.2 and $1, respectively.