According to crypto analyst Ali Martinez, Polygon (MATIC) is poised for major gains amidst a wider correction in the past seven days. Polygon is currently down by 9.2% in the past seven days, but the analyst pointed out that MATIC is printing a textbook buy signal on the daily chart.
In a recent analysis posted on social media platform X, Martinez noted that the TD Sequential technical analysis presents a buy signal in a potential price reversal.
Crypto Analyst Spots Buy Signal for MATIC
Martinez is known for his concise future outlooks regarding popular cryptocurrencies, especially Bitcoin, Ethereum, Solana, and Dogecoin. However, he has now made a rare prediction regarding Polygon (MATIC).
At the time of writing, MATIC has mostly traded below the $1 mark since March 29. But according to the analyst, recent price action indicates this is poised to change very soon. According to the 1D chart shared on social media, MATIC seems to have formed major support at $0.8733 and is showing strong signs of a potential bounce to the upside.
The TD Sequential presents a buy signal on the $MATIC daily chart! If #MATIC stays strong above $0.87, we could see a rebound to $0.95, or better yet, $1! pic.twitter.com/YSEoH7JbV4
— Ali (@ali_charts) April 5, 2024
The TD sequential indicator has presented a buy signal in the form of a red nine candlestick, indicating the start of a new upward countdown. If MATIC holds above $0.87, it will confirm the buy signal and likely spark a move to $0.95 to $1 and beyond. The last Polygon time saw a similar signal on the indicator, it went on a moderate increase from $0.95 to $1.08.
MATIC market cap currently at $8.9 billion. Chart: TradingView.com
What’s Next For Polygon?
Polygon is currently undergoing fundamental changes that could determine its price trajectory for the rest of the year. One of these is a planned upgrade to Polygon 2.0 and the switch from the MATIC token to the POL token as the native gas and staking asset of the Polygon ecosystem.
A by-product of this change could be a decrease in trading activity for MATIC, which in turn could lead to a lackluster price action. However, MATIC does appear well positioned for further gains if the technical indicator proves accurate and the overall crypto market returns to a strong bullish momentum. As a result, it could gather enough strength from the bulls to push above $1 again.
Interestingly, the token’s price action has gone in the way of Martinez’s analysis since he dropped it. At the time of writing, MATIC is trading at $0.9048, representing a 3.6% increase from $0.8733. On a larger timeframe, MATIC is currently 29% down from its yearly high of $1.2751 which it attained on March 13.
Featured image from Pexels, chart from TradingView