MATIC price is approaching breaking a massive bullish pattern. On-chain stats also point to an optimistic outlook for Polygon. Moreover, with Bitcoin turning bullish, altcoins including MATIC could also witness gains.
Profit and even more profit
From December 13, 2021 to March 16, MATIC price set up four lower highs and three lower lows. Connecting these swing points using trendlines shows a falling wedge in formation. This technical pattern favors the bulls and the target is obtained by adding the distance between the first swing and swing low at the $1.42 breakout point.
MATIC price is under pressure as the end of the falling wedge approaches. The convergence of the trend lines has reduced the volatility considerably; so a breakout from this area will be the key to seeing volatility explode again. Interestingly, the daily demand zone, which stretches from $1.15 to $1.36, is present just around the level where Polygon was currently trading at the time of writing.
Therefore, a bounce from this key support area will help initiate a bull run. The target based on the falling wedge forecast is $1.94, but in a bullish event, investors can expect MATIC price to extend this run-up and reach the psychological level of $2.
In total, this run-up would represent a gain of 43% and it is likely that the upside will be capped.
Source: TradingView, MATIC/USDT 1-Day Chart
This optimistic outlook for the Layer 2 token supports the delivery distribution graph sorted by number of addresses. This on-chain statistic shows that wallets with one million to 10 million MATIC tokens have surged from 183 to 201 in the past week.
This 10% spike in whales indicates that these high net worth and long-term investors are interested in Polygon at current price levels and expect an optimistic outlook.
Interestingly, the last time the number of such whales increased from 178 to 204 was in early January. At the time, MATIC’s price rose 50% in less than two weeks.
MATIC delivery distribution by number of addresses chart
The on-chain stats correctly posit the described outlook from a technical perspective. Therefore, market participants should wait patiently for Polygon to produce a decisive close above the upper trendline of the falling wedge at around $1.40. Such a development will open the door for bulls to start the run up to $2.
However, a daily candlestick that closes below the $1.15 support level will invalidate the bullish these described above.