Polygon Price Prediction: MATIC Continues its Recovery Streak as Bulls Eye 44% Gains to $0.96

The Polygon price is trading at $0.6893 as of 1:30 a.m. EST on Thursday, up 6.5% on the day.

MATIC has seen an increase in its daily trading volume which has rallied 43% over the last 24 hours to $395 million making it the 22nd most traded cryptocurrency, according to data from CoinMarketCap.

This points to increased investor interest in the native token of the Ethereum Layer 2 scaling blockchain. This interest began on Sept. 28 when the MATIC price began rising resulting in more than 22% gains over the last month.

Although Polygon remains bearish in the longer timeframes with 32% and 23% losses over the past six and 12 months respectively, the technical setup reveals that it is readying for a massive move upwards.

Polygon Price Needs to Reclaim $0.70 to Secure the Uptrend

After turning away from highs of around $0.89 in mid-July, the MATIC price embarked on a downtrend that was stopped at the $0.50 support after losing more than 44% of its value.

Buyer congestion from the $0.50 psychological level began pushing Polygon upwards in a steady recovery that has seen the token recoup 32% of the losses to the current levels.

The MATIC price action between July 25 and today has led to the appearance of a rounded bottom chart pattern on the daily chart (see below). There was an attempt to drop below the pattern on Oct. 11 but this turned out to be a bear trap as the price turned up sharply a few days later.

At the time of writing, MATIC was battling resistance from the 200-day Exponential Moving Average (EMA) currently sitting at $0.6893. A daily candlestick close above the 200-day EMA would push the price toward the $0.70 psychological level

Bulls were required to flip this level into support to secure the recovery. If they succeed, they will be bolstered to push it past the neckline of the governing chart pattern at $0.7312, confirming a bullish breakout.

Such a move would set MATIC on a clear path toward the $0.90 range high or higher to reach the technical target of the rounded bottom chart pattern at $0.966. This would bring the total gains to 44.37%.

MATIC/USD Daily Chart

The moving averages were keeping the bullish narrative alive by maintaining an upward trajectory.

In addition, the Directional Movement Index (DMI) sent a positive signal in mid-October. As long as the positive directional line (+DI) at 32 remains above the negative directional line (-DI) MATIC will continue rising, and the average directional line (ADX) at 40 suggested that the uptrend was very strong.

On the other hand, Polygon may turn down from the current price to revisit the 100-day EMA at $0.6053 or the 50-day EMA at $0.5810. A drop lower would see the price drop toward the pattern's bottom around the $0.50 area, invalidating the bullish narrative.