Polygon (MATIC) Price Analysis: Bearish Outlook on Multiple Timeframes
The Polygon (MATIC) price has experienced a decline after being rejected by a crucial resistance area. The price has also broken down from a short-term parallel channel, further indicating a bearish trend.
- The rejection from the $0.80 resistance area and the creation of a long upper wick suggests a bearish outlook on the weekly timeframe.
- The fact that the resistance area previously provided support strengthens the bearish trend.
- The weekly Relative Strength Index (RSI) signals a bearish sentiment, with the RSI below 50 and declining.
- The daily analysis supports the bearish reading, as the price broke down from an ascending parallel channel.
- The RSI movement below 50 further legitimizes the bearish price action.
Despite the bearish prediction, there is a possibility of a bounce in the price. The Polygon NFT volume is increasing, which could support a potential bounce. However, if the price fails to bounce, the next closest support is at $0.60.
If the price manages to move above the channel’s support line at $0.80, it would invalidate the breakdown and potentially trigger a sharp increase to $1.
Hot Take
The Polygon (MATIC) price is currently facing significant resistance and shows bearish indicators on both the weekly and daily timeframes. While there is a possibility of a bounce, it is important to monitor the price closely to see if it can break above the resistance and reclaim the $0.80 level. Crypto readers should be cautious and consider the bearish outlook when making trading decisions.
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