The Altcoin market is posting an extensive rebound as traders appear to be preparing for a possible ”Alt Season” run. One theory behind why an Alt Season is imminent is that the general sentiment around Bitcoin has reached a solid footing. Outflows from Bitcoin are funding more Altcoin projects, with tokens reporting impressive growth. Polygon (MATIC) price coils up under a crucial resistance level at $1.82. A sudden burst in buying pressure that shatters this mark can kick-start a 55% ascent to all-time highs at $2.89. A recent report by Okcoin indicated that Altcoins, majorly Stablecoins and tokens in decentralized finance drove institutional interest in crypto for 2021. Polygon has been at the center of DeFi evolution. Recently, Bitwise, a popular crypto investment fund manager, has decided to launch a Polygon Fund to help make scaling solutions available to investors.
Key Levels
Resistance Levels: $2.89, $2.48, $2.00
Support Levels: $1.50, $1.25, $1.00
MATIC/USD Daily ChartDifferent digital assets are breaking out of their consolidation phase, making breakouts off the important levels. We could see a possible breakout on MATIC’s consolidation bout. At the time of post, MATIC was exchanging hands at $1.784, up 6.58% on the day. MATIC turned into sideways consolidation shortly after hitting all-time highs at $2.89 in May.
While it has rebounded significantly in the last two days, a decisive close above $1.87 will allow MATIC price to continue its ascent towards the $2.48 level and the $2.89 all-time highs. The lengthy range trading and the positive RSI raise the odds for an upturn. Nevertheless, in the case of a pullback, we’d expect the downside contained by $1.51 level ahead of the Moving averages of 50 and 200 at $1.33 and $1.20 respectively.
MATIC/USD 4-Hour ChartMATIC price formed a bottom on October 12 at $1.153. This was a turnaround point for MATIC as it rallied 63% from this point to where it currently trades. A breakout occurred through the moving averages 50 and 200 as the price rose to highs of $1.87 today. Given that a breakout has occurred, bullish traders are likely to continue to pressure the MATIC higher during the following trading session.
The potential target for buyers beyond the $1.87 high will be near the $2.50 region. A break beyond here and the all-time highs at $2.89 may explore beyond the $3 mark. Alternatively, the $1.67 level and the MA 50 at $1.57 are expected to curtail downside risks if any arise. Overall, a decisive close above the $1.87 barrier is required for the new bullish wave to continue.
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