Polygon (MATIC) has recently experienced a decline following Bitcoin’s pullback. However, according to a crypto analyst, this unexpected move may actually set MATIC up for a potential upward trend. In a video analysis shared on the Cheeky Crypto YouTube Channel, analyst JB suggests that MATIC’s decline to a specific retracement area could indicate a favorable opportunity. He predicts that MATIC could potentially rise to a range of $0.87 to $1.36.
JB highlights the importance of the stochastic level in determining MATIC’s future performance. Initially suggesting an overbought condition, the stochastic level has now sharply corrected, indicating a potential push to the upside for MATIC. While this is a positive indicator, volume plays a crucial role in determining the likelihood of an upward move. Unfortunately, current volumes across various cryptocurrencies, including MATIC, are not at their best, which could hinder any projection of growth.
Despite the optimistic projection, JB also raises concerns about factors that could contribute to a downward move for MATIC. The weak volumes experienced could impact the prices of crypto tokens, including MATIC. Additionally, the fear of MATIC losing the cross above the 200 EMA is a cause for concern as it suggests a potential dump. This particular indicator should not be overlooked when assessing the future trajectory of MATIC.
JB draws attention to the 5-wave pattern forming on different timeframes on the MATIC chart. However, the identification of the fifth wave remains uncertain. JB notes that a push above $94.5 would suggest that the last wave is yet to come, but it is also possible that it could be an A, B, and C pattern instead. This ambiguity adds an additional layer of complexity to predicting MATIC’s future performance.
Despite the uncertainty surrounding MATIC’s patterns and volumes, JB remains bullish on the crypto token’s future. He maintains his previous target of $100 for MATIC in the upcoming bull run, but also suggests the potential for MATIC to outperform this projection. JB believes that MATIC has the potential to be a “powerhouse” in the bull run, establishing itself as one of the standout altcoins. He attributes this potential success to the possible approval of pending Ethereum Spot ETF applications, where MATIC’s role in the Ethereum ecosystem could prove advantageous.
At the time of writing, MATIC is trading at approximately $0.85, experiencing a minor decrease of over 1%. It is important to note that cryptocurrency prices are highly volatile and can change rapidly.
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