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Popular crypto analyst Ali Martinez stated on X that he expects a 17% price increase for Polygon (MATIC) if it breaks above its parallel channel. Evaluating the Layer2 token’s movements on a 4-hour chart, Ali Martinez found that its price has been consolidating within a range forming a parallel channel pattern since early April.
Trend Line in MATIC
The specified model forms when a token’s price movement is confined between two trend lines, indicating a consolidation period. At the time of writing, MATIC is trading at $0.72 and is heading towards the upper line of the parallel channel. A token’s rise towards the upper trend line of a parallel channel is interpreted as an attempt to test resistance.
If this position cannot be maintained and a breakout occurs, the asset in question may record new price increases. However, it was found that MATIC’s rise above this resistance level could be challenging in the short term. This is because the token’s price is trading significantly close to the 20-day exponential moving average (EMA).
Price Analysis in Altcoin
A token’s price fluctuating around this moving average may indicate indecision in the market, where neither buyers nor sellers dominate. For a breakout above the resistance to occur, an increase in buying pressure may be necessary. In this case, it allows bulls to clearly take control of the market.
However, with MATIC’s MACD line falling below the signal line, bear strength may be increasing. When a token’s MACD line tries to fall below the signal line, it is usually interpreted as a bearish signal. This situation may indicate that the upward momentum is weakening and a transition towards a downtrend is occurring. Consequently, analyst Ali Martinez expects a 17% increase if MATIC breaks above the parallel channel, but its proximity to the 20-day EMA and the MACD indicator pose a downside risk.
