Polygon price inches closer to $1 pivotal level but bulls take a breather before completing a 109% falling wedge pattern breakout to $1.25.
Published 11 seconds ago
Altcoin volatility has gone up significantly, calling on traders to be careful with both scalping and day trading activities. Polygon (MATIC) price is among the tokens showing high volatility on Tuesday, up 8% to trade at $0.9358.
Backing the uptrend is a massive increase in the 24-hour trading volume to $1.25 billion and a 7.34% surge in the market cap to $8.6 billion.
In addition to increasing investor interest, especially among whales, the technical outlook has been bullish since October 20. It is plausible for Polygon price to close the day above $1 and even push to the falling wedge pattern breakout target at $1.25.
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Whales Scoop MATIC Bolstering Polygon Price Rally
Institutional and whale demand for the layer 2 solutions protocol token appears to be back, according to blockchain analytics platform IntoTheBlock. Select assets like Polygon are seeing more than 170% in on-chain transaction volume.
“Institutional and whale demand has picked up strongly, with Bitcoin seeing an 80% increase in the volume of transactions of over $100k, Ethereum 170%, and Polygon over 3,800% compared to 30 days ago,” IntoTheBlock said via a post on X.
As big players stream into the market, they help build the momentum to sustain the uptrend. This could be one of the reasons for keeping MATIC price in the green even as other tokens around it trim gains.
Institutional and whale demand has picked up strongly, with Bitcoin seeing an 80% increase in the volume of transactions of over $100k, Ethereum 170%, and Polygon over 3,800% compared to 30 days ago. pic.twitter.com/ElM1CDZ3wA
— IntoTheBlock (@intotheblock) November 11, 2023
Meanwhile, Polygon price is in the middle of a falling wedge pattern breakout which could push the uptrend to $1.25. As shown on the chart, a falling wedge forms toward the of a downtrend.
It signifies a loose bearish grip while signalling the possibility of a trend change. Traders usually time their long entries above the upper descending trendline resistance.
For the breakout to be impactful, it must be accompanied by a substantial increase in trading volume like in MATIC’s case.
Traders would usually follow the breakout through to the target, in this case, 109% from the breakout point to $1.25. However, it is prudent to lock in the gains at various levels, especially at the key resistance area like $1.
That said those interested in keeping their positions open may continue doing so as long as the Moving Average Convergence Divergence (MACD) dons a buy signal. In addition to the call to traders to seek more exposure to MATIC, the momentum indicator’s position at 0.019 depicts a bullish thesis.
The bullish cross formed on the same daily chart by the 50-day Exponential Moving Average (EMA) (red) crossing above the long-term 100-day EMA (blue) further reinforced the bulls’ presence in the market.
A higher support at $0.9 would also encourage holders to stay put amid the outlook for gains above $1.25. On the other side of the fence, losing the same level of support might result in losses as Polygon price seeks support ahead of the next breakout.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.