MATIC Price Prediction: Polygon Might Slide to $1.3 Before Exploding 55% Higher
- Polygon's down-trending market forms a falling wedge pattern with a massive bullish signal.
- The ongoing consolidation in MATIC price action gradually pulls the token closer to a breakout.
Polygon price action continues to pull the token to explore lower levels. A rejection at $2.4 left the gates wide open for bears to have a field day. Losses have been gradual, but formidable support areas remain scarce. Therefore, the least resistance path is downward based on the overall technical picture, at least for now.
Polygon could reverse the trend based on the falling wedge pattern
A falling wedge pattern has appeared on the four-hour chart. Note this is a continuation pattern created when the price bounces between two downward sloping and converging trend lines. It is also considered a bullish formation, leading to reversal and continuation in regard to where it forms within the trend.
As the price tends to consolidate within an uptrend, a descending wedge pattern occurs. The trend lines connect the decreasing lows and highs. Before the lines converge, a breakout is anticipated and leads to a significant trend reversal or continuation.
In the MATIC chart below, the price seems to be closing in on the breakout point. However, due to the resistance faced at the 200 Simple Moving Average (SMA), Polygon may encounter another slight dip before the final uplift occurs. Support is anticipated at the lower trend line, if not at $1.3 (this week's anchor).
MATIC/USD four-hour chart
If the wedge pattern matures as expected, Polygon will lift by 55% to trade at $2.2, resuming the bull cycle toward the all-time high of $2.7.
Meanwhile, the Moving Average Convergence Divergence (MACD) adds credence to the bullish outlook, thus gradually closing the mean line gap. The uptrend will solidify when the MACD line (blue) widens and sustains the divergence above the signal line.
Looking at the other side of the fence
It is worth noting that support at the lower trend of the falling wedge must hold. Otherwise, more sell orders will be triggered, thus adding weight to the overhead pressure. Other supports are anticipated at $1.2 and $1, respectively. The bearish leg will stretch to $0.78 if push comes to shove and the mentioned support areas fail to hold.