Here Are Breakout Scenarios for Ethereum Rival Polygon (MATIC), Polkadot (DOT) and VeChain: Analyst Justin Bennett
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A popular crypto strategist and trader is unveiling potential breakout plays for Polygon (MATIC), Polkadot (DOT) and VeChain (VET) as we head into the new year.
In a new strategy session, analyst Justin Bennett says he’s watching the price action of Polygon, a scaling solution designed to enable the widescale adoption of decentralized apps on the Ethereum (ETH) blockchain.
According to the crypto trader, MATIC is trading within an ascending channel and must take out a strong resistance area to continue its uptrend.
“Ultimately, anytime a market is testing its all-time high and also carving higher highs and higher lows like this, it is technically a bullish structure to the market. But at the same time, you have to understand that $2.70 is a confluence of resistance and therefore, it’s going to be a very strong level in that MATIC needs to get above it on a daily closing basis to flip that area to support.”
Bennett says a convincing move above $2.70 on the daily chart could potentially send MATIC between $4 and $4.50.
Next up is Polkadot, a project that connects multiple blockchains into one unified network, allowing users on different blockchains to send and receive transfers of any type of data or asset.
According to Bennett, DOT must reclaim a key price level to reverse its bearish trend.
“The only thing to reverse a downtrend, which is just a series of lower highs and lower lows, the only thing to reverse that is the opposite – so higher highs and higher lows. So we need to see the market break the [diagonal] trendline, come up here, take out $31 to $32, close above that, flip it to support and then move toward $38.”
The last coin on Bennett’s list is supply chain management platform VeChain (VET), which he says is potentially gearing up for a massive breakout next year.
“This is one scenario I’m playing with right now is, potentially, the idea that VET has formed this triangle pattern here over really the entire year. So if that is the case and we see VET stay above this area down here, right around $0.07, maybe just above it, this could play out. We could just see a market that consolidates this way here, comes up, retest resistance ($0.15) and then potentially we get a breakout in 2022.”
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Featured Image: Shutterstock/andreiuc88/Vladimir
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