According to analyst Ali Martinez, Polygon’s MATIC token is gaining momentum and could enter a 62% bull rally. Polygon’s MATIC token seems to be heading towards $1.63. Breaking this resistance level will likely trigger a new bull run. The price must stay above $1.24 for the bullish view to be valid. Ethereum started September with a padollama as all major indicators showed it heading towards $4,000. Ethereum is up about 10% in the last 36 hours.
New bull run for MATIC?
As we mentioned earlier on , Polygon’s MATIC token looks set to continue the upward trend as fiyadollarsar creates a massive bullish pattern and whales accumulate millions of tokens. Polygon displays an impressively optimistic outlook. The MATIC token appears to have developed a head-and-shoulder pattern on its daily chart since the beginning of June. The token is currently forming the right shoulder of the bullish formation. An increase in buying pressure pushing MATIC above the head-and-shoulder line could lead to a significant upside. A break of the $1.63 resistance level could mark the start of a fresh uptrend towards $2.64. This bullish target is determined by measuring the height between the head and neckline of the pattern and adding this distance from the break point.
While Polygon has yet to overcome the general resistance, behavioral analysis platform Santiment reveals that major investors are preparing for the price to rise even higher. The distribution chart of the owners shows that purchase orders have increased over the past two weeks. Many addresses holding millions of dollars in MATIC, popularly known as “whales”, have significantly increased their positions. Wallets with 10,000 to 10,000,000 MATICs on the network have purchased approximately 54,370,000 tokens since August 22, worth more than $76 million.
The increasing upward pressure is associated with the steady growth in the number of daily active addresses in the Polygon network, which has recently reached 7,450. The flow of buyers is usually followed by an increase in on-chain activity. These key factors suggest that individual and institutional interest is returning to MATIC, with volatility likely to follow. It is worth noting that based on the head-and-shoulder pattern, MATIC must continue to trade above $1.24 for the optimistic thesis to hold. Failure to do so may encourage new buyers to sell their holdings to avoid significant losses. According to the analyst, if there is a sell-off below the $1.24 support level, MATIC could target the 200-day moving average at $0.92.
What do the metrics say for Ethereum?
On the other hand, Ethereum looks ready to return to $4,000. Ethereum started September with a padollama as all major indicators showed it was heading towards $4,000. Ethereum is up about 10% in the last 36 hours. Given the lack of resistance ahead, the bullish momentum could expand further. According to analyst Ali Martinez, as long as the $3,200 support level remains, ETH could rally to $4,000. Ethereum has turned green again after crossing an important resistance barrier. Now, techniques and fundamentals show that ETH continues its uptrend. Ethereum climbed above $3,500, but reaching the price point was not easy.
Indeed, the second largest cryptocurrency by market cap has endured a long period of consolidation that began on August 6. As a result, this has formed an ascending triangle on ETH’s 4-hours chart. A recent increase in buying pressure behind Ethereum has allowed it to cut the overhead resistance, confirming the bullish breakout from the consolidation pattern. According to analyst Ali Martinez, now that ETH has hit a new high, the triangle formation indicates that the price could rise another 12% to hit a target of around $4,000.
About 1.3 million addresses previously purchased approximately 11.77 million ETH between $3,120 and $3,230. This area of critical interest may have the ability to absorb any downward pressure. Holders in this price range will likely do anything to stay profitable, including buying more tokens to push the price higher.