The Polygon (MATIC) price has nearly reached a new yearly low and is trading below the $0.60 horizontal support area.
The technical analysis for the weekly timeframe shows a bearish outlook for MATIC. The main reason for this is the breakdown from an ascending parallel channel in April (red circle). This confirmed that the trend was bearish.
- The breakdown from the ascending parallel channel suggests a bearish trend
- The price fell below the $0.80 area and validated it as resistance in July
- The continued decrease could lead to another 30% drop to the $0.40 horizontal support area
- The weekly Relative Strength Index (RSI) is bearish, indicating a downward movement
The daily timeframe analysis also supports a bearish outlook for MATIC. The price action and wave count indicate a downward movement.
- The price action failed to break out from a descending resistance line
- The wave count suggests that the price is in the fifth and final wave of a downward movement
- The most likely level for the wave to end would be at $0.40 and $0.28
Despite the bearish prediction, a strong bounce that reclaims the $0.60 support area could lead to a 40% increase to the next resistance at $0.80.
Hot Take:
The MATIC price is currently facing strong bearish pressure, with the potential for further declines. However, if there is a significant bounce back above the $0.60 support area, it could signal a temporary reversal and potential for a short-term bullish movement.
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