Closely followed crypto strategist Justin Bennett has revealed key price levels for altcoin Polygon (MATIC), which is seen as an Ethereum (ETH) competitor in the cryptocurrency market.
Justin Bennett did an in-depth review of Polygon (MATIC), a scaling solution designed to enable widespread adoption of decentralized applications on the Ethereum blockchain.
Bennett believes that $2.70 is a major hurdle for MATIC, and if this hurdle is overcome, it could boost the altcoin to all-time highs.
“If MATIC rises above $2.70 in the coming weeks, it is likely to find resistance here at the top of this channel. Whether that's around $4.00 or $4.70, this level here depends on when MATIC tests it. The market loves symmetry. And that's why equidistant channels like this work so well. If MATIC rises above $2.70, a daily close above that, that would be support and then resistance here at this level [about $4] and above this $4.70 level. Wait for the daily close above $2.70 and then aim for the top of this channel somewhere between $4.00 and $4.70.”
The slightly higher MATIC price is located around $2.60. Less than two weeks ago, the altcoin was trading as low as $1.75. A price of $4.00 per MATIC represents an increase of over 50% from today's price, and a MATIC of $4.70 represents an increase of 80%.
Bennett said he's considering several possible scenarios for MATIC over the next few weeks. Besides the optimistic game already discussed, the analyst also takes into account a possible scenario that would invalidate the bullish scenario.
“Over the next few days we either get a close above $2.70, turn this area to support, and then we get a move… and then we can come back to this area at $2.60-2.70]. In the third scenario, if MATIC fails and crashes, the area to hold will be right here around $1.70. The only reason a break above $2.70 works is because the market is making higher and higher lows.”