Here's Why Polygon Coin May Outperform Bitcoin In Near Term

by CoinGape Benzinga Contributor

Zinger Key Points

A higher price rejection candle indicates the MATIC price faces supply pressure around the $0.865 mark.
A bullish crossover between the 20-and-50-day EMA should pour more buying orders into the market
The intraday trading volume in the MATIC is $479 Million, indicating a 116% gain

Several major cryptocurrencies continue to gain more ground as the overall market witnessed a relief rally. However, the polygon coin seems ahead of the market as it has gained 135 in the last five days. Furthermore, it seems this rally is backed by fundamental perks like several partnerships and integrations. How far will MATIC/USD buyers take this rally?

TradingView Chart Source-Tradingview

Amid the past few months downfall in the crypto market, the Polygon coin price formed a flag pattern in the daily chart. However, this bullish continuation pattern offers a pullback opportunity to attract more buyers in the market.

Completing this pattern accentuates the market sentiment in favor of buying on dips. Thus, on October 17th, the polygon coin price gave a bullish breakout from the resistance trendline, signaling the last correction phase had ended.

Today, altcoin jumped 2%, offering a follow-up on the trendline breakout. However, the long-tail rejection indicates that the prices will likely revert and retest the breached resistance.

The possible retest could offer an entry opportunity for interest if the price shows sustainability above the flipped support. The post-breakout rally could provide a potential target at $0.94, followed by the $1.02 mark.
On a contrary note, if the polygon coin fails to sustain above this new support, the price will nosedive below the trendline. This fake breakout scenario would bring additional selling pressure and trigger further downfall.

Technical Indicators

Relative strength index: the RSI slope jumps above the neutral line and 20-SMA, indicating the market sentiment favors the potential rally.

EMA's: Along with the trendline breakout, the polygon coin price breached a cluster of EMA resistances(20, 50, 100) in one go. These EMA's flipped into possible support should assist in maintaining the bull run.