Polygon price stuck in pennant as MATIC heads for an upside breakout to $0.96

Polygon buyers and sellers are being pushed toward each other in tight trading range.
MATIC attempted a bullish breakout on Wednesday but failed.
Price action looks bullish again this Thursday with a possible breakout lifting MATIC by 10% in value.

Polygon (MATIC) price is currently trading sideways with great respect for the pennant formation that has been present since the beginning of May. With several attempts to the upside for a breakout and some minor dips to the downside, the final result looks to favor the bulls. With pressure building on the topside, a breakout could see a quick rally up to $0.96 with a 10% value addition in the process.

Polygon price to head higher if bulls can retain control

Polygon price has been behaving quite orderly within the ranges from the pennant being formed on the chart since the beginning of May. The pennant is pushing bears and bulls toward each other in a slow grind with lower highs and higher lows. A breakout is due anytime, and from the looks of it, bulls will favor the outcome.

MATIC needs to pop above $0.89, which is the current level to breach in order to break the red descending trend line on the topside. Traders already got long this morning in the ASIA PAC session when price action briefly touched the green ascending trend line. Once a breakout is noticed, expect more bulls to flock into the rally that will spiral up to $0.96 with a 10% gain in return.

MATIC/USD 4H-chart

The breakout could be smashed to the downside as overall bears have the upper hand with the 55-day Simple Moving Average (SMA) trading below the 200-day SMA. As both are nudging lower, a Death Cross is underway, and more bearish pressure could be seen. A breakdown to the downside would see a nudge back to $0.82 for a loss of 8% and a new four-month low.

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