In Brief
The Polygon (MATIC) price has broken out from a descending resistance trendline and reclaimed the $0.60 resistance area. The weekly and daily timeframe price action is bullish. The Polygon team also announced two new upgrades this week. Despite the bullish MATIC price prediction, a close below the $0.60 horizontal resistance area will invalidate the breakout.
MATIC Reclaims Horizontal Resistance
The daily timeframe technical analysis shows that MATIC has increased since September 11 and broke out from a descending resistance trendline on September 29. After initially struggling to increase above the $0.60 horizontal resistance area on October 4 (red icon), the MATIC price created a higher low on October 19. It broke out three days later. Polygon announced that it is releasing a new version of the Miden Virtual Machine, expected to improve its performance by 30%. The Polygon team also announced that they were triggering the 10-day timelock of the Inca Berry, the newest upgrade of the Mainnet. The Binance exchange also announced the launching of a new trading service using the USDC stablecoin on its native Polygon blockchain.
MATIC Price Prediction: Has the Trend Reversal Started?
The weekly timeframe technical analysis provides a bullish outlook, supporting the ongoing breakout from the resistance trendline. In September, the MATIC price fell below the long-term $0.60 horizontal area. However, that was only a deviation (green circle) since the price reclaimed the area shortly afterward. Besides the deviation, MATIC also created a bullish, engulfing candlestick last week (green icon). This is a type of bullish candlestick when the entire decrease from the previous period is negated in the next one. It further adds validity to the breakout and reclaim of the horizontal area. If the MATIC price continues increasing, the next resistance will be at $0.85, 40% above the current price. Due to the reclaim of the horizontal level, cryptocurrency trader Crypto_Scient believes that MATIC will reach this resistance. Despite this bullish MATIC price prediction, a weekly close below the $0.60 horizontal area will invalidate the breakout. If this happens, it can cause a 40% price decrease to the June lows at $0.35.
