While we mentioned earlier today that there is currently a battle between Arbitrum (ARB) and StarkNet (STRK), another Layer 2 altcoin is busy sending bullish signals on the charts, often indicating a price increase.

The altcoin in question is Polygon (MATIC), a prominent Layer-2 scaling solution for Ethereum (ETH). The goal is to enable faster and cheaper transactions by using sidechains for transaction processing. Recently, MATIC has been showing some intriguing technical patterns that suggest a bullish move could occur in the near term. Let’s take a closer look at the technical analysis to see what the charts tell us.

Technical analysis

Monthly chart: Symmetrical triangle

On the monthly chart, MATIC forms a symmetrical triangle. This pattern often indicates a continuation of the trend after a period of consolidation if it can hold support and close above resistance. This could potentially lead to a strong price move when the price breaks out of the triangle.

Weekly Chart: Elliott Wave Triangle

On the weekly chart we see an Elliott Wave triangle. This indicates that we are in the final phase of a corrective structure. Once this phase is completed, the price may make an impulsive move upwards, which can result in significant price increases.

Absorption and demand

The 1-hour chart shows absorption, where the SPOT CVD (Cumulative Volume Delta) decreases while the price remains stable. Absorption occurs when there is a lot of selling pressure, but strong buying orders (limit orders) support the price. This is often a sign of strength and can indicate an impending bullish move.

Broadening wedge en inverse head & shoulders

On the 4-hour chart we see a broadening wedge pattern and an inverse head & shoulders pattern. Both patterns are bullish indicators. A break above the diagonal resistance line could pave the way for a significant increase.

Conclusion

MATIC exhibits several bullish technical patterns on different time frames. The symmetrical triangle pattern on the monthly chart, the Elliott Wave triangle on the weekly chart, the absorption and demand signals, as well as the falling wedge and inverse head & shoulders patterns on the lower time frames, all point to a potentially bullish scenario. Should MATIC break out of these patterns, we can expect significant price increases.

MATIC is an interesting coin to watch at the moment, especially as the broader market prepares for possible bullish moves. As always, it is important to do your research and act carefully.

Disclaimer: The analyzes above are based on technical patterns and trends in the crypto market. It is critical to emphasize that this information is not intended as financial advice. Cryptocurrency investments inherently involve risk and are subject to volatility. Before making investment decisions, it is recommended to do your own research, seek financial advice and only invest what you can afford to lose.

Source: https://cryptobenelux.com/2024/06/23/deze-layer-2-altcoin-geeft-bullish-signalen-af/



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