Polygon at the Edge of a Consolidation: What if the MATIC Price Replicates the 2021 Bull Run Rally?
The post Polygon at the Edge of a Consolidation: What if the MATIC Price Replicates the 2021 Bull Run Rally? appeared first on Coinpedia Fintech News
After the recent bullish spell, the markets have entered a consolidation phase. This flashes a bearish signal but from a wider perspective, the markets are preparing for the next bullish action. However, being distinct from the bewildered market sentiments, Polygon maintained more or less stagnant market behaviour.
Although it traded within pre-defined resistance and support levels, the rally sustained itself within a decisive phase, carrying both the possibility of a bullish breakout and a bearish pullback.
It has been over 20 months since the MATIC price has failed to display massive bullish action. The MATIC price did soar by over 40% in the last few days of Q1, but all the gains were washed away in the next fortnight. This move compelled the price to consolidate within a narrow range along with the multi-year support levels it held since 2021. The bearish action has created a few touch points at this level, followed by a massive upswing.
Therefore, now that the rally is displaying a similar price action, the question arises whether the MATIC price will display an equal upswing of over 10,000%.
As previously stated, the MATIC price continues to trade between decisive symmetrical triangles and is approaching the apex. Interestingly, the Gaussian channel has recently turned bullish while trading below the average range. As a result, levels around $0.8 can be considered key resistance levels to achieve, potentially pushing prices to $1 during the next bullish wave. It should be noted that bulls have yet to enter the race, as bull-bear power demonstrates the strength of bears.
On a larger scale, bears have been exhibiting acute strength since the 2022 bear market, while bullish strength has remained subdued. Therefore, the MATIC price is expected to continue with the consolidation until it rises above average levels. Once this move materializes, a breakout may occur, elevating the levels above $1 initially and later moving higher, reclaiming upper targets, and forming a new ATH in the last few days of 2024 or early 2025.