MATIC: Should you expect a 36% upswing thanks to these chart formations
MATIC’s price, at press time, highlighted a bullish setup in play, one that is nearing its breakout point. Investors can expect a breakout from this technical formation to result in exponential gains. On-chain metrics seemed to be both leaning bullish, but also adding a tailwind to the optimistic outlook.
From 23 December 2021 to 10 March 2022, MATIC’s price set up four lower highs and two higher lows. Connecting these swing points using trend lines revealed a falling wedge formation.
This technical formation forecasts a 36% upswing to $1.95, a level obtained by adding the distance between the first swing high and low to the breakout point at $1.43.
As MATIC’s price continues to get squeezed between these two trendlines, investors can expect a massive breakout gushing with volatility. The $1.31-support level is the immediate barrier that will prevent a steep move lower, so a bounce off this foothold will be vital in triggering a decisive close above $1.43. This breakout will mark the start of an uptrend and propel the altcoin to $1.65 after a 16% rally.
While there is a chance the upside will be capped for MATIC at around $1.65, a resurgence of buying pressure will most likely extend the run to $1.95, bringing the total ascent to 36%.
Source: MATIC/USDT on TradingView
The 1-hour active addresses show the most recent activity of investors and could serve as a reliable signal for trading when combined with other technicals. For MATIC, this indicator has seen an explosive uptick from roughly 300 to 2755 on 9 March.
This spike suggests that investors are interested in MATIC at its current price levels. Considering the tightening of the price range inside the falling wedge, investors need to pay close attention to the crypto.
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