In Brief
Despite a decline in Q3 2023 revenue, Polygon shows an increase in average daily active addresses and a 50% rise in average daily NFT sales. The Relative Strength Index (RSI) on both weekly and daily timeframes is bullish, aligning with positive price action. However, failure to close above the $0.85 resistance area may lead to a sharp drop back to the channel.
MATIC Reclaims Horizontal Resistance
On the weekly timeframe, MATIC price has risen, reclaiming the $0.60 horizontal level, a previous support zone since July 2022. Despite a temporary dip below this level in September, the price has now regained it, indicating the earlier decrease was a deviation.
During this upward movement, MATIC price increased by 55%. The RSI, a momentum indicator, is above 50 and increasing, signaling a bullish trend.
State of MATIC in Q3 2023
A report on Q3 2023 shows a revenue decrease from $11.4 million to $5.1 million. However, there’s a slight increase in average daily active addresses and a 50% rise in average daily NFT sales volume.
Polygon Connect Event
Polygon Labs announced Polygon Connect in Bengaluru on December 7, a global gathering of builders and tech enthusiasts featuring panels, keynotes, and technical workshops.
Analyst Insights
- MayorOfMatic believes the bottom is in due to a break from a long-term descending resistance trendline.
- 52kskew emphasizes the importance of the $0.85 level, expressing skepticism about short-term sustainability due to overhead resistance.
- CasiTrades predicts a short-term decrease using Elliott Waves, a technique analyzing long-term price patterns and investor psychology.
MATIC Price Prediction
On the daily timeframe, MATIC broke out from an ascending parallel channel on October 22, confirming it as a support level on October 27. The RSI is bullish, indicating a new upward trend. The closest resistance at $0.85, if broken, could lead to a 60% increase, reaching the $1.25 resistance area untouched since March. Failure to break above $0.85 may result in a 28% drop validating the channel’s resistance line at $0.61.
