Polygon MATIC remains at the vanguard of the cryptocurrency market, despite the 75% crash this month. The rare price rebound of 230% from the May 23 low and the emerging cup-with-handle pattern base has positioned Polygon Matic with the relative strength to print new highs in the coming days. Only an acceleration in the selling pressure of cryptocurrency will derail the bullish outcome.
Up to May 19, Polygon MATIC price led the cryptocurrency complex higher following a decisive breakout from a multi-week consolidation shaped during March and April. The Polygon price breakout was accompanied by a notable surge in trade volume and yielded overbought daily and weekly RSI conditions.
From May 19 to May 23, Polygon MATIC price declined 75% before striking support level at the 50-day simple moving average at $0.791 and just above the 61.8% of the April-May rally at a price of $0.693, as well as the 2021 rising trend line at $0.645.
MATIC's price matched the significant correction with a massive Matic rebound of 230%, setting the foundation for the developing cup-with-handle pattern base. The right side of the Polygon Matic base is characterized by double-digit up days on solid trade volume, and the handle component is forming in the upper half of the base on below-average trade volume. The handle may need an extra amount of time due to the Matic price compression generated by the steep decline and rapid rebound.
Once the handle is complete, the Polygon price is primed to break out from the cup-with-handle pattern base with a measured move target price of $8.290 from the handle high of $2.482, yielding a 230% gain for accomplished investors.
In the path of the measured move target is the 138.2% extension of the May price correction at $4.984 and then the 161.8% extension at a price of $6.90.
Unfortunately for keen Matic investors, Polygon's price could become entangled with a new wave of selling pressure in the cryptocurrency market. Levels of support include the 50% retracement level of the rally from the May 23 low at a price of $1.358, the 61.8% retracement level at $1.178, and the May 19 low at $1.011.
Long-term, Polygon MATIC price will be buoyed by the growing recognition of Polygon as a blockchain network with built-in solutions for projects, as well as the recent Polygon with Google BigQuery announcement and the much-discussed investment by Mark Cuban. It makes it a challenging target for bearish investors.
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