After settling for more than a year, the MATIC price saw a significant breakout, suggesting that the token is on the verge of a huge explosion.
Excessive compression of the price could lead to a significant rise over the present ATH near $3.
In terms of fundamentals, Polygon is regarded as one of the strongest coins and has recovered quickly from a negative decline. During the most recent bearish attack, the token did drop below $1, but it soon recovered to levels above. This marks the start of a new bullish advance as the price has broken above the pattern that was trapped in a key phase.
There are moments when the volume is down almost 50% from the day before, but the price is still climbing. Does this mean that the bearish action is coming to an end? If so, when the price regains the $1.5 peak in 2023, will it get stronger?
Since the MATIC price was rejected from its long-term ATH, it has been moving in a downward trend line. The ascending support line gave the token stability amid bearish dips and laid the groundwork for a robust comeback. Similar to what happened at the beginning of the 2021 bull run, the most recent rally enabled the price to break past the upper resistance, suggesting the beginning of a fresh positive spell.
The MATIC price’s weekly chart indicates that the price behaved similarly to the start of the 2021 bull run, breaking above the pivotal triangle. Additionally, the Gaussian channel is still bearish, but both levels are heavily convergent, indicating that a trend reversal may be approaching. Additionally, the upper level of the RSI is going to be reached, which might push the token above the bearish effect.
Considering that the price of Polygon may now start a new upswing at $1 and go on to turn into a bull run, the upper objectives also seem to have been significantly raised. A 500% increase from the current levels might occur if the price forms a new ATH between $6 and $7.5 if previous price behavior is followed.
Bulls must close the weekly trade above the levels and hold the levels above $1.15 in order to achieve this. This might lead to more prolonged positive activity and ultimately assist in starting a new bull run in the price of Polygon (MATIC).