Polygon’s MATIC token appears to be heading towards $1.63.
Breaking through this resistance level would likely trigger a new bull run.
Prices must hold above $1.24 for the bullish outlook to prevail.
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Polygon’s MATIC token looks ready to resume its uptrend as prices build a massive bullish pattern and whales accumulate millions of tokens.
MATIC Prepares for New Bull Run
Polygon is showing an impressive optimistic outlook.
The scaling solution’s MATIC token appears to have developed a head-and-shoulders pattern on its daily chart since early June. The token is currently forming the right shoulder of the bullish formation.
A spike in buying pressure that pushes MATIC above the head-and-shoulders’ neckline could lead to a significant run-up. Slicing through the $1.63 resistance level could mark the beginning of a new uptrend towards $2.64.
This bullish target is determined by measuring the height between the pattern’s head and neckline and adding that distance from the breakout point.
Although Polygon is yet to overcome the overhead resistance, behavior analytics platform Santiment reveals that large investors are preparing for prices to advance further.
The holders distribution chart shows that buy orders have been increasing over the last two weeks. Many addresses holding millions of dollars in MATIC, colloquially known as “whales,” have drastically increased their positions.
The wallets on the network with 10,000 to 10,000,000 MATIC have acquired roughly 54,370,000 tokens since Aug. 22, worth more than $76 million.
The mounting upward pressure correlates with steady growth in the number of daily active addresses on the Polygon network, which recently hit 7,450. The influx of buyers is usually followed by a spike in on-chain activity.
These fundamental factors suggest that retail and institutional interest is returning to MATIC, and volatility could follow.
It is worth noting that based on the head-and-shoulders pattern, MATIC needs to continue trading above $1.24 for the optimistic thesis to prevail. Failing to do so could encourage recent buyers to sell their holdings to avoid incurring significant losses.
In the event of a sell-off below the $1.24 support level, MATIC could target the 200-day moving average at $0.92.
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