Crypto Analyst Reveals Trigger for 17% Polygon (MATIC) Rally

An analyst has explained how Polygon could see a rally of around 17% if the cryptocurrency’s price were to break above this level.

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Parallel Channel can reveal what the next step could be for Polygon Related reading Related reading MATIC Prize

Parallel Channel can reveal what the next step could be for Polygon

In a after on X, analyst Ali talked about a parallel channel that Polygon has consolidated in recent weeks. The “parallel channel” here refers to a technical analysis pattern (TA) drawn using two parallel trend lines.

The top line of this pattern connects successive tops in the asset, while the bottom line connects the bottoms. Although the price is within the area bounded by these two lines (the “channel”), it is likely to remain stuck there and only consolidate sideways.

Naturally, retests of the upper line could likely result in a reversal to the downside, while the lower one could act as a source of support, allowing the coin to bottom out and move back into an uptrend.

There are different types of parallel channels in TA, such as ascending and descending channels, where the channel runs either upward or downward.

However, in the context of the current topic, a parallel channel parallel to the time axis is important. This means that consolidation within this channel occurs between the same top and bottom levels.

As with other consolidation patterns in TA, breaking the parallel channel trendlines can also indicate a continuation of the trend in that direction. More specifically, a rise above the pattern could indicate bullish momentum for the asset, while a fall below the channel could mean a bearish outcome instead.

Here’s a chart showing what the parallel channel that Polygon has consolidated within has looked like over the past month:

Polygon parallel channel — The channel the asset’s price has been stuck in for the past few weeks | Source: @ali_charts on X

From the chart above, it is visible that Polygon has been stuck in consolidation within this parallel channel since last month’s cryptocurrency crash.

The asset has made some attempts at the highest levels, but so far these have all failed, with the coin unable to find a single breakthrough. MATIC is currently hovering near the level, so another test may be coming soon.

If Polygon price rises above the channel this time, it could enjoy continued bullish momentum. “A breakout above $0.76 could trigger a 17% surge, pushing $MATIC to $0.88!” Ali notes.

This price target is based on the fact that last month’s crash, which brought the asset into this consolidation, occurred from around that level. Given this potential retest of the channel’s upper line, it now remains to be seen how the cryptocurrency performs in the coming days.