Polygon Breakout Above $1, Here is Where the Rally Could Top
The price of Polygon ( MATIC) decisively broke above the $1 significant psychological level, which gives bulls hope for a lasting rally. While the bullish case scenario is strong, the current price structure hints at where the rally could top.
MATIC Bullish Case
The bullish cues emerge from two essential technical setups:
First, we have a classic golden cross signal as the 50-day Simple Moving Average (SMA) cross above the 200-day simple moving average.
Secondly, based on the Elliott Wave analysis, MATIC's price is in the process of completing a Flat price structure.
Flats are 3-wave patterns with an internal structure subdivided into 3-3-5 waves. The Elliott Wave view suggests the cycle from the June low has completed wave A at $1.05 high, and the pullback in wave B ended at $0.68.
In the short term, we are developing the last push higher in wave C, which has a 5-wave internal structure. For this price structure to be completed, wave C needs one more push higher after the pullback in wave 4 is completed.
MATIC Price Targets
The 3-wave flat corrective pattern will usually target the 1, and 1.272 Fibonacci extension levels of wave A measured against the wave B low.
On the MATIC price chart, these correspond to $1.427, respectively $1.628.
