In Brief
The Polygon (MATIC) price has experienced a prolonged decline under a descending resistance trend line for over 700 days. While the weekly and daily price action remain undetermined, the Relative Strength Index (RSI) is bullish for both. However, a failure to break out from the $0.85 resistance level could result in a significant drop. The MATIC price, which fell from a high of $0.98 on November 14, is now attempting a breakout in December.
MATIC Gets Rejected From Long-Term Resistance
On a weekly timeframe, MATIC’s technical analysis reveals a downtrend since its peak in December 2021, marked by a descending resistance trend line in place for 707 days. The most recent rejection (red icon) occurred three weeks ago, bringing MATIC to a crucial horizontal zone that has alternated between support and resistance since April 2022.
Traders often use the Relative Strength Index (RSI) as a momentum indicator to discern overbought or oversold conditions and make decisions on asset accumulation or selling. An RSI above 50 in an upward trajectory signifies a prevailing advantage for bulls, while values below 50 suggest the opposite. The weekly RSI is on the rise and positioned above 50, signaling both upward momentum and a bullish trend. It’s noteworthy that Robinhood launched crypto trading in Europe, listing Polygon among the 26 cryptocurrencies available for trade.
What Are Analysts Saying?
Cryptocurrency traders and analysts on X give conflicting views on the future trend. CryptoPoseidon is bearish since the price trades at resistance, posting a potential short setup for the future MATIC price. MoreCryptoOnline is bullish but expresses doubts about whether the short-term correction is complete. He tweeted, “We still need to see 5 waves off the September lows to confirm that the price is in a bull market.”
MATIC Price Prediction: Breakout or Breakdown?
While the daily time frame also gives some conflicting signs, it is leaning bullish due to the price action and RSI. MATIC broke out from a descending resistance trend line on October 22, leading to a high of $0.98 on November 14. However, the price could not sustain the increase and fell below the $0.85 area, suggesting that the previous increase was a deviation (red circle).
Nevertheless, the MATIC price regained its footing and is attempting to break out from the $0.85 resistance area again. This attempt is supported by the daily RSI, which bounced at 50 (green icon) and is increasing. If MATIC breaks out above $0.85, it can increase by 45% and reach the next resistance at $1.25. Despite this bullish MATIC price prediction, a rejection from the $0.85 area can lead to a 20% decrease to the 0.618 Fib retracement support level at $0.67.
