An analyst has explained how Polygon is starting to break out of a symmetrical triangle pattern. If the breakout is confirmed, a rally to this level could be coming.
Polygon Weekly Price Is On The Verge Of Breaking Out Of A Symmetrical Triangle
In a new post on X, analyst Ali talked about a pattern that has been forming in the weekly price of MATIC. The pattern in question is called the "symmetrical triangle."
As its name suggests, this technical pattern looks like a triangle. There are two main trendlines in this formation; the upper one is made by connecting a series of tops, while the lower one joins together bottoms. A feature of the pattern is that these two trendlines converge at about the same incline (which is why it has "symmetrical" in its name).
There are other triangle patterns in technical analysis as well, like the ascending and descending triangles. These patterns, for example, differ from the symmetrical triangle in that they have one trendline moving horizontally, while the symmetrical triangle has both of them at a slope.
As is generally the case with patterns like this, the upper trendline in the symmetrical triangle can act as a source of resistance, while the lower one may provide support.
Sustained breaks out of either of these levels can lead to a continuation of the trend in that direction. According to Ali, Polygon's weekly price has been on the verge of such a breakout recently.
Below is the chart shared by the analyst that highlights this potential break brewing in MATIC:
Looks like the price has approached the upper trendline recently | Source: @ali_charts on X
As displayed in the above graph, Polygon's weekly price has recently surged toward the upper trendline of a symmetrical triangle pattern and appears to be trying to break out. "A sustained weekly candlestick close above $0.96 could propel MATIC towards $1.73," explains the analyst.
So far, Polygon seems to be well on its way to confirming this breakout, as its price has shot up more than 19% during the last 24 hours. If the symmetrical triangle break indeed holds up, then MATIC would have to rally another 66% from the current price if the target set by Ali is to be met.
MATIC Has Surpassed The $1 Level For The First Time Since April
Polygon has enjoyed some sharp bullish momentum during the past week as its price has now reclaimed $1, a level that the cryptocurrency hasn't visited since April.
The below chart shows how the asset has performed during the past month.
The price of the coin seems to have rapidly grown in recent days | Source: MATICUSD on TradingView
In the past week, the asset is up over 34%. The only cryptocurrency in the market cap top 20 list that has shown better returns is Solana (SOL) with its about 47% profits.
It's currently unknown whether MATIC can keep up this rally, but if it can, the symmetrical triangle break would be confirmed and more surge would potentially follow.
Featured image from GuerrillaBuzz on Unsplash.com, charts from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source: NewsBTC.com
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