MATIC could hit $ 3.5 in the fourth quarter as the price rises 20% on the week, triggering the bull flag setup

MATIC is likely to hit $ 3.50 later this year as the chart looks like a bull flag.

In particular, a bull flag is a bullish continuation pattern that occurs when prices consolidate after a strong rally upward. In doing so, the price trended down as it left a series of higher lows and lower lows.

A breakout occurs when the price closes above the flag’s upper trend line (or resistance line). In other words, the price can go up to the level of the previous uptrend, also known as the flagpole.

It looks like MATIC drew a similar pattern when it hit a record high of $ 2.89 on May 17 after a rally of $ 2 (flagpole).

Weekly MATIC / USD Price Chart with Up Flag Setup | Source: TradingView

Therefore, if MATIC price breaks the flag resistance decisively, it will rebound about $ 2 above the breakout level. That brings the price to almost $ 3.50.

Discount scenario

The bullish lineup came as MATIC rose 30% on Friday to hit a one-month high near $ 1.65.

However, the price corrected slightly near the high mentioned above and fell by around 4% due to the profit-taking sentiment among day traders. In addition, since the correction took place near the bull flag resistance, the possibility of a longer sell-off in the near future is higher.

If there is a pullback, MATIC risks falling to the first weekly support line, towards the 20-week exponential moving average (20-week EMA, green wave) around $ 1,231. Meanwhile, further weakness could shift the downside target to the 50-week EMA (red wave) around $ 0.868.

Cows dominate

In addition to the bull flag, MATIC has drawn a cup-with-grip pattern, suggesting it will soon hit the $ 1.80 mark.

Trader MK2 Trading is the first recognize That bullish reversal indicator on the daily MATIC chart. It shows that the price forms a round bottom (cup) which leads to an upward movement and then represents a descending channel area (handle).

MATIC / USD daily price chart with cup and handle pattern | Source: TradingView

The next break out of the “handle” trading range will signal a bullish continuation. The price increases to a length that corresponds to the depth of the cup. Hence, MK2 Trading predicts that MATIC will trade at $ 1.80 in the coming sessions.

Macro fundamentals

The latest buying pressure in the market comes after that Upbit, one of the leading Korean exchanges by volume, has added MATIC pairs to its trading platform. In addition, the exchange also lists SOL and NU pairs.

SOL is another standout Friday, up over 11.5%, while NuCyphers NU is up more than 845% today following Upbit’s announcement.

You can see the MATIC prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to Cointelegraph

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