Polygon is considered one of the strongest tokens in terms of fundamentals, with a quick recovery after a bearish decline. The token fell below $1 during the recent bearish attack but quickly recovered the above levels. This caused the price to surge above the pattern trapped in the decisive phase, signaling the start of a new bullish movement.
The price appears to be rising at a time when trading volume has plummeted by nearly 50% compared to the previous day. Does this mean bearish activity has stopped? So, will prices strengthen if they regain their 2023 highs near $1.50?
MATIC price is trading along a downtrend line after being rejected by the long-term ATH. The rising support level supported the token during the bearish pullback while also providing a solid foundation for a strong bounce. The recent rebound has allowed the price to break above the upper resistance level, signaling the start of a new bullish order, as previously happened at the start of the 2021 bull market.
The weekly chart of MATIC price suggests that the price is following the same pattern and has crossed a decisive triangle similar to the start of the 2021 bull market. Moreover, while the Gaussian channel continues to remain bearish, both levels are converging significantly, suggesting that a trend reversal may be imminent. Moreover, RSI is about to reach its upper limit, which could push the token above its bearish impact.
The upper target also appears to be significantly higher now that Polygon price could start a new uptrend from $1, which could translate into further upside. If the price follows similar price action as before, a new ATH could form between $6 and $7.5, resulting in a 500% jump from current levels.
To do so, bulls would need to hold above $1.15 and close the week above that level. This could pave the way for extended bullish action and eventually help Polygon (MATIC) price trigger a new bull market.