- Polygon improves the most from the recent crash to $0.7.
- MATIC bulls have eyes on $3, a move that could trigger incredible gains.
Polygon has been consistent with the recovery from the price drop last week, whereby the token tested support at $0.7. Trading above $1 cleared doubts about its ability to recover, with investors coming in huge numbers.
At the time of writing, Polygon has confirmed the break above $2 to trade at $2.3. On the upside, bulls are looking forward to breaking above the recently achieved record high of $2.7. If the price cracks the potential double-top pattern, we expect MATIC to begin the next phase of the journey above $3.
Polygon rallies amid improved technical levels
The upswing from $0.7 was validated by the Moving Average Convergence Divergence (MACD) indicator. This indicator identifies positions to buy the dip and sell the top. Following the retracement last week, the MACD dived into the negative region. A sell signal was presented by the MACD line crossing beneath the signal line.
As the token started to recover, the trend momentum indicator flashed a buy signal with the MACD line crossing above the signal line. The incredible recovery was also confirmed by the MACD rising into the positive area. MATIC will close the gap to the all-time high if the technical outlook remains unchanged.
MATIC/USD four-hour chart
The In/Out of the Money Around Price (IOMAP) on-chain model by IntoTheBlock (ITB) reveals that all the addresses on Polygon’s network are in profit. As the price nears $2.7, another round of price discovery will occur.
Meanwhile, the absence of a defined resistance suggests that the trend is in the bulls’ favor. On the other hand, robust support is highlighted between $2.12 and $2.15. Here, 20 addresses bought roughly 19.9 million MATIC. With the downside firmly secured, the slightest resistance path is upward.
Polygon IOMAP model
Looking at the other side of the fence
The four-hour chart reveals the possibility of a double-top pattern forming in the coming sessions. This is a highly bearish pattern in technical analysis. If the price cracks the all-time high resistance at $2.7 and stretches past $3, the bearish narrative will be sabotaged.
However, if bulls fail to sail through the resistance at the second top, an uptick in overhead pressure could come into the play, leading to a significant correction. It is essential to keep in mind support levels at $2, $1.4, and $0.7.