Polygon (MATIC) experienced a significant surge in its price, marking a 21% increase and reaching $1.05 in the latest trading sessions. This advancement occurs amid a substantial rise in trading volume, reaching $2,341,624,558 in the last 24 hours, according to CoinMarketCap, representing an impressive increment of 172%.
Market analysts suggest that the cryptocurrency could be on track to establish a new yearly high if it manages to surpass the critical level of $0.96. According to projections by the prominent analyst Ali Martinez, the possibility of the price reaching $1.73 is envisioned if this threshold is overcome. However, the timing of this potential upswing is still unclear, leaving the question of when this bullish scenario might materialize open.
The resurgence in the cryptocurrency valuation is attributed to a series of developments and enhancements within its ecosystem. The introduction of the Polygon Contract Development Kit (Polygon CDK) has been particularly highlighted as a key factor. Major industry players are already utilizing this tool to create scalable solutions, leading to an increasing demand for MATIC and propelling the notable price surge.
Polygon Must Break Resistances and Achieve Targets or Could Face Corrections of Up to 30%
On the technical analysis front, it is observed that Polygon successfully broke a descending resistance trend line of 730 days, which had been in place since the all-time high of $2.90 in December 2021. Although the current price has exceeded $1, it is still below its annual high of $1.57.
There is considerable optimism regarding the future of MATIC. Patterns such as the bullish triangle and the formation of a “cup and handle” suggest potential additional upward movements. Some experts, like Pentosh1, emphasize the strength of historical support and the likelihood of a continuation in the bullish trend.
In terms of price predictions, Elliott Wave analysis suggests targets of $1.20 and $1.50 in the short term. However, a cautionary note is sounded that a potential drop below the horizontal support of $0.95 could indicate a trend reversal, with the possibility of a 30% correction to the nearest support level at $0.75.