A closely followed strategist is identifying key price levels for an Ethereum (ETH) competitor that’s been outshining the overall shaky crypto markets.
Popular analyst Justin Bennett takes to YouTube for an in-depth strategy session about Polygon (MATIC), a scaling solution designed to enable the widescale adoption of decentralized apps on the Ethereum blockchain.
Bennett believes that $2.70 is an important barrier for MATIC which if surpassed, could send the altcoin soaring to new all-time highs.
“It’s pretty natural to assume that if MATIC can get above $2.70 over the coming weeks, break above this area, it’s likely to find resistance up here at the top of this channel. Whether that’s around $4.00 or maybe $4.70, this level up here, that all depends on when MATIC will test that level.
A market loves symmetry. Always remember that: markets love symmetry. And that’s why equidistant channels like this work so well. If MATIC gets above $2.70, a daily close above this [$2.70], that becomes support, and then resistance is going to be up here at this level [around $4.00], as well as that $4.70 mark.
That’s how I would play a breakout scenario. Wait for the daily close above $2.70 and then target the top of that channel somewhere between $4.00 and $4.70.”
At time of writing MATIC is up slightly and priced at $2.61. Less than two weeks ago, the altcoin was trading for as low as $1.75.
A price of $4.00 per MATIC would mean an over 50% increase from today’s price, and Polygon at $4.70 would indicate an 80% surge to the upside.
Bennett says he’s considering several possible scenarios for MATIC over the next several weeks. Besides the optimistic play already discussed, the analyst takes into account a possible scenario that will invalidate his bullish script.
“We either get a close above $2.70 in the next few days, flip this area to support, and then get a move up… or we get a rotation lower first, in which case we look to this $2.00 support area down here to provide support, and then move back up into this area [$2.60-$2.70].
The third scenario is if MATIC fails to break out and does break down, the must-hold area is going to be right down here at around $1.70.
The only reason that breakout above $2.70 is going to work is because the market has been making higher highs and higher lows.
If we see that change, then this entire idea is no more. If it breaks below $1.70, then this entire idea is off the table.”
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