MATIC yesterday set a new ATH at $ 2.74, about 7 months after the previous ATH of $ 2.70. In the past few days, the 14th largest altcoin by market cap has struggled to hit an all-time high. However, the price has fallen back to the $ 2.50 range at press time.

MATIC 4-hour chart | Source: Tradingview

Upward pressure has been building for weeks and could push MATIC to $ 3 or even higher. However, $ 2.52 is an important level for the bulls to maintain.

MATIC can soon go up at a gallop

In a new strategy meeting on December 23, popular analyst Justin Bennett commented that Ethereum’s competitors will outperform declining markets.

In comparison to the current situation, Bennett’s analysis in the initial phase seems to be quite accurate. He believes $ 2.7 is a major hurdle for MATIC that, if exceeded, could push the altcoin to new all-time highs.

“It is natural to assume that if MATIC can climb above $ 2.7 in the coming weeks, it is likely to face resistance at the top of this channel. Whether it is about $ 4 or maybe $ 4.7 the price will go up and it all depends on when MATIC tests that level.

Always remember that the market loves symmetry. That is why such uniform channels work so well. If MATIC rises above USD 2.7 and closes the day above it will become support and then resistance will rise by USD 4 and USD 4.7 respectively.

This is my breakout scenario. Wait for a close above $ 2.7 and then aim for a top of the channel between $ 4 and $ 4.7. ”

The source: Justin Bennett

At the time of writing, MATIC is down almost 5% in 24 hours and costs $ 2.50. Less than 2 weeks ago, this altcoin was trading at just $ 1.75.

To reach $ 4 and $ 4.7, MATIC must increase more than 50% and 80%, respectively.

Bennett said he is reviewing a number of possible scenarios for MATIC over the next few weeks. In addition to making the above bullish forecast, the analyst is also considering the case of invalidating the given bullish scenario.

“MATIC could close above $ 2.7 in the next few days, flip this zone around in support and then move up … or move down first. If so, the $ 2 support area is likely to work and then fall back into the $ 2.6-2.7 area.

The third scenario is that if MATIC doesn’t break out and collapse, the must-hold zone will be around $ 1.70.

The only reason the price broke above $ 2.7 was because the market was making higher highs and lows.

When we see this change, the whole idea is very promising. If it drops below $ 1.70 then there is no need to talk about it. ”

Technical analysis

Source: TradingView

The Fib Retracement Tool is used to draw multiple levels of retracement for MATIC based on the price movement from $ 2,579 to $ 1,735. Along with the retracement levels, higher timeframe support (green) is also identified on the chart.

These levels converge a little at $ 2.05 and the $ 2.25-2.28 zone. Hence, they have a greater meaning. In the past few days a wedge pattern (white) has formed on the chart and MATIC broke out above the upper trendline and retested it as support.

2.57 to 2.6 US dollars is the reasonable level in the short term. The price rose to $ 2.69 and retested this range for buyers yesterday. As long as the price doesn’t drop below $ 2.52, there is still a chance MATIC will push up.

MATIC / USDT billion | Source: TradingView

OBV has hit a series of higher lows in the past few days suggesting strong buying pressure. The short-term rally also looks positive.

There is a bearish divergence (pink) on the MACD histogram – the MACD is making a lower high while the price is making a higher high. After this divergence, the price slipped slightly to $ 2.57. However, it is likely that MATIC will continue to rise.

On the larger time frames, MATIC has been making higher lows more frequently since mid-November, suggesting that a parabolic move is likely. Accordingly, MATIC is pointing to $ 2.8 and $ 3.1 – these are the 27.2% and 61.8% extensions of the movement shown on the price chart.

Overall, MATIC is bullish in the charts. The $ 2.57-2.6 range along with the $ 2.52 level are the places to watch for in the short term. If the price moves below these levels, further decline is possible. However, at the time of writing, it looks like MATIC is headed for $ 3 in the coming days.

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.

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