Polygon (MATIC) retested the bullish flag’s top trend-line on Friday after rallying by almost 30%.
MATIC has higher chances of hitting $3.50 before this year’s end as it records a formation that seems to resemble a bullish flag. Bull flags indicate upward trend continuation and appear after price consolidations that come after a massive rally. That often results in lower trends while leaving lower lows and higher lows.
A breakout happens when the asset closes beyond the flag’s top trend-line (resistance). That also means that the price may surge to equal the previous uptrend’s height, also referred to as flagpole. It seems like MATIC is forming a similar setup even after hitting a record peak at $2.89 on 17 May.
If MATIC’s price records a decisive close past the flag’s resistance, the alt will shot the upward target well beyond $2. With that, Polygon will clear the road towards $3.50.
The Retracement Angle
MATIC formed the bullish pattern after surging roughly 30% on Friday, hitting a one-month peak around $1.65. However, the altcoin encountered a brief pullback after that, losing 4% due to profit-taking by day traders. Furthermore, the asset has a higher probability of continuous sell-offs as the recent retracement appeared around the bullish flag resistance.
If a pullback surfaces, MATIC will risk a plunge towards the support at 20-week EMA near $1.231. Moreover, extended downtrends will have the alt targeting the 50-week exponential moving average near $0.868.
Besides the bull flag, Polygon displayed a cup-handle pattern, showing the possibilities of the token hitting $1.80 in the coming sessions. Also, the daily chart indicated a bullish reversal. It created a round bottom (cup) following an uptrend, then displaying a descending channel (handle). MK2 Trading analyst expects the alternative coin to hit $1.80 in the sessions to come.
The latest Polygon purchase comes after Upbit, a leading crypto exchange based in South Korea, added MATIC for its clients. Upbit also added NuCypher (NU) and Solana (SOL). Solana performed well on Friday, increasing by more than 11.5%, while NU gained over 845% after the announcement on Friday.