Since last week, the price of Ethereum has been skyrocketing, with the asset gaining roughly 50% in just six days. Numerous altcoins traded bullishly as a result of this momentum.
The Walt Disney Co. revealed last week that Polygon had been selected for an accelerator programme for business growth. MATIC has had gains of around 70% and strong bullish momentum.
The 12-hour chart showed MATIC in a significant downturn heading into May and June. Originally, it was mid-January that this downtrend started. Since then, the price has made a series of lower highs, which is typical of a downtrend.
Two areas of strong resistance that have existed since May were essential for the bulls to overcome. These were located in the range of £0.46£-0.5 and £0.6-£0.65.
MATIC has actually recorded higher lows and broke the prior lower high throughout the past month. Following the advance above £0.50 last week, the longer-term bias changed from bearish to bullish.
The £0.79-£83 are was resisting further advances as of the time of writing. In the next weeks, the £0.67 area would probably see a spike in demand. Lower period traders would concentrate on the bulls’ defensive area of £0.72-£0.73.
Briefly dropping to 40, the RSI has been above neutral 50 for much of the past month. This demonstrated that traders believed strongly in an upward trend over the last few weeks.
Along with the price increase, the A/D line also jumped. This proved strong demand for the rally. This was another important clue that MATIC still had room for upside. Strong bullish momentum was also indicated by the MACD as it soared above the zero line.
The long trade was a little crowded last week due to the Disney announcement. According to Coinglass, the long/short ratio on FTX for the asset was 62%.
If Bitcoin also maintained its bullish bias, MATIC’s revisit to the £0.72-£0.75 can be used to buy the asset with targets of £0.87 and £1.00.