A closely monitored strategist identifies the key price levels for a Ethereum (ETH)-Competitor who has dwarfed the generally shaky crypto markets.
Popular analyst Justin Bennett visits YouTube for an in-depth strategy session about Polygon (MATIC), a scaling solution designed to accommodate the widespread adoption of decentralized apps on the Ethereum Blockchain.
Bennett believes $ 2.70 is an important barrier for MATIC that, if crossed, could propel the altcoin to new all-time highs.
“It’s pretty natural to assume that if MATIC can go above $ 2.70 in the coming weeks and break that range, it will likely hit up here on this channel resistance will come across. Whether that’s about $ 4.00 or maybe $ 4.70, those levels up here, it all depends on when MATIC is going to test that level.
A market loves symmetry. Always remember: markets love symmetry. And that’s why equidistant channels like this work so well. When MATIC rises above $ 2.70, a daily close above it [$2.70], that becomes support, and then the resistance up here will be at this level [around $4.00], as well as the $ 4.70 mark.
This is how I would play a breakout scenario. Wait for the day to close above $ 2.70 and then aim for the top of that channel anywhere between $ 4.00 and $ 4.70. “
Source: Justin Bennett / YouTube
At the time of writing, MATIC is up slightly and costs $ 2.61. Less than two weeks ago, the altcoin was trading for just $ 1.75.
A price of $ 4.00 per MATIC would mean an increase of over 50% from today’s price, and Polygon at $ 4.70 would mean an 80% increase to the top.
Bennett says he is considering several possible scenarios for MATIC over the next few weeks. In addition to the optimistic game already discussed, the analyst considers a possible scenario that invalidates his bullish script.
“Either we hit a closing price above $ 2.70 in the next few days, flip that area to support and then move up … and then go back up into that area [$2.60-$2.70].
The third scenario is that when MATIC doesn’t break out and collapse, the must-hold area here will be around $ 1.70.
The only reason a breakout above $ 2.70 will work is because the market has made higher highs and higher lows.
If we see this change, then this whole idea is no more. If it falls below $ 1.70, the whole idea is off the table. “
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Source: Crypto News Deutsch