Although the cryptocurrency market has been facing strong volatility due to the unfolding conflict between Russia and Ukraine, analysts believe that certain altcoins are ready to start a rally.
And according to the team at FXStreet, Polygon (MATIC) is one such cryptocurrency.
MATIC is ready start a rally
The firm points out that in the case of MATIC, if the bulls can maintain the recent buying momentum formed around the cryptocurrency, the $1.60 and $1.65 levels could be seen as the crypto’s next targets.
“The rise in the price of MATIC is very close, so close that we can reach it with our hands”, he pointed out.
To justify their prediction, the analysts highlighted that the price of the crypto asset has regained significant ground. That’s because the bulls appear to be pushing the crypto asset up.
“Strength in purchasing power is also validated by the Relative Strength Index, which has reached level 40,” they said.
As such, FXStreet highlights that the next step for the MATIC price is to turn this week’s supply zone into support, which is between $1.45 and $1.50:
“If MATIC price can consolidate above this resistance barrier, Polygon’s native token should have no problem challenging bears between $1.60 and $1.65 and even the weekly high of $1.70 .”
However, while the MATIC price appears to favor the bulls, there is still a chance that the bears could regain control.
“If the MATIC price cannot print a daily close above the weekly supply zone, it will mean problems attracting new capital”, they point out. In this case, the failure to break out and retest this week’s supply zone could indicate that MATIC’s recent price action is part of a short-term “Sucker’s Rally”.
“A test of the price at $1.44 will be the first bearish signal to invalidate the general bullish thesis. If that happens, MATIC price is likely to dip towards the $1.37 low. It will then try to get liquidity below $1.24. This will represent a 17% correction from current levels.”