A popular cryptocurrency strategist and trader is revealing where he believes the price of Polygon (MATIC), Polkadot (DOT) and VeChain (VET) will go as the new year approaches.
In a new strategy session, analyst Justin Bennett said he is watching the price action of Polygon, a scalability solution designed to enable large-scale adoption of decentralized applications on the ETH (ETH) blockchain.
According to the trader, MATIC is trading within an uptrend channel and should clear a strong resistance area to continue its uptrend.
“Ultimately, whenever a market is testing its historic high and also hitting higher highs and lows, it’s technically a bullish framework for the market. But at the same time, you have to understand that $2.70 is a confluence of resistance. Therefore, it will be a very strong level that MATIC will have to overcome in order for it to become a support area”, he said.
As you pointed out, a convincing move above $2.70 on the daily chart could send the MATIC between $4 and $4.50.
Polkadot and VeChain
The next cryptocurrency on the analyst’s list is Polkadot, a project that connects multiple blockchains into a unified network, allowing users on different blockchains to send and receive transfers of any type of data or assets.
According to Bennett, DOT must recover a key price level to reverse its downtrend.
“The only thing to reverse a downtrend, which is just a series of lower highs and lower lows, is higher highs and higher lows. So we need to see the market break the trendline, rise from $31 to $32, close above that, turn into support, and then move to $38.”
Finally, the last cryptocurrency on Bennett’s list is the VeChain supply chain management (VET) platform. According to him, VET is potentially gearing up for a massive explosion next year.
“This is a scenario I’m playing with right now. VET formed a triangular pattern throughout the year. So if VET goes above this area down here, around $0.07, maybe a little higher, that could go away. We could just see a market consolidating in this way. Go up, retest resistance ($0.15) and then potentially we have a breakout in 2022.”