Polygon (MATIC) has the potential to attain $3.l by the end of this year as it charts a design that's starting to resemble a balderdash flag.

In detail, bull flags are bullish continuation patterns that emerge when the price consolidates following a strong move higher. In doing and so, the price tends to trend lower while leaving behind a sequence of higher lows and lower lows.

A breakout occurs when the price closes above the flag'south upper trendline (or resistance). In other words, the toll tin can rising by as much every bit the height of the previous uptrend, also known as a flagpole.

It appears MATIC has been painting a similar blueprint even since information technology established a tape loftier of $ii.89 on May 17, post-obit a $2-long upside run (the flagpole).

MATIC/USD weekly price nautical chart featuring bull flag setup. Source: TradingView

As a result, should MATIC's toll pause above the flag'southward resistance decisively, it will shift its upside target to almost $2 above the breakout level. That would roughly put the Polygon token en road to $3.50.

The pullback angle

The bullish setup appeared every bit MATIC surged by around 30% on Friday to accomplish a one-month high near $1.65.

Nonetheless, the cryptocurrency experienced a slight correction about the said elevation level, dropping by effectually iv% on profit-taking sentiment among daytraders. Moreover, since the correction occurred right around the bull flag resistance, it raised the possibility of extended selloffs ahead.

Should a pullback happen, information technology will adventure dropping MATIC to its get-go line of weekly support toward its 20-calendar week exponential moving boilerplate (20-week EMA; the greenish wave) around $1.231. Meanwhile, further weakness could shift the downside target to the fifty-calendar week EMA (the velvet wave) around $0.868.

Bulls accept the upper hand

In improver to the total flag, MATIC painted a cup-and-handle pattern that presented the possibility of the cryptocurrency hitting $1.80 presently.

Twitterati MK2 Trading spotted the bullish reversal indicator first on the Polygon token's daily price chart. Information technology showed the toll forming a rounding bottom (cup) following an upside movement and so painting a descending channel range (handle).

MATIC/USD daily toll chart featuring cup and handle blueprint. Source: TradingView

A subsequent breakout from the handle's trading range would signal a bullish continuation. In doing and so, the toll would centre a run-up toward the level at a length equal to the cup's depth. As a result, MK2 Trading expects MATIC at $1.eighty in the coming sessions.

Macro fundamentals

The latest tour of ownership in the Polygon market appeared after Upbit, one of the leading South Korean crypto exchanges by book, added MATIC pairs to its trading platform. Additionally, the exchange also listed Solana (SOL) and NuCypher (NU) pairs.

Solana was another standout performer on Friday, with its native token, SOL, surging past over 11.v%, while NuCypher'southward NU rallied by more than than 845% Friday after Upbit's announcement.

The views and opinions expressed here are solely those of the author and do non necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves chance, you should conduct your own enquiry when making a conclusion.