The Polygon (MATIC) Price Approaches Yearly Lows
The price of Polygon (MATIC) is quickly approaching its lowest point of the year after breaking through a crucial support level. Despite the current bearish trend, the wave count and RSI readings indicate that a bottom may be reached soon.
Polygon Price Continues to Decline After Rejection
When analyzing the weekly timeframe for MATIC, a bearish outlook is observed due to two main reasons related to the price action. Firstly, the price broke below the support line of an ascending parallel channel in April, indicating a shift to a bearish trend. Additionally, the price fell below the $0.80 horizontal area and confirmed it as resistance in July, signifying selling pressure.
RSI Provides Mixed Signals for MATIC
The RSI (Relative Strength Index) is a momentum indicator used by traders to determine whether a market is overbought or oversold. Currently, the RSI for MATIC is below 50, indicating a bearish trend. However, it has also generated bullish divergence, which often precedes trend reversals. Therefore, the weekly RSI provides an undetermined outlook for the future trend’s direction.
Positive Developments for Polygon (MATIC) Price
Despite the bearish outlook, there are some positive news regarding the Polygon (MATIC) price. LimeWire is building a platform on Polygon that utilizes AI to generate NFTs for sale, benefiting original content developers. Additionally, both Wirex and Veloce are deploying on Polygon, contributing to its growth.
MATIC Price Prediction: Elliott Wave Count Indicates Bottom
Examining the daily timeframe, the wave count and RSI suggest that a bottom for MATIC may be near. The Elliott Wave theory, which analyzes long-term price patterns and investor psychology, indicates that MATIC is in its fifth and final wave of decrease. The shape of the fourth wave supports this count, as it was contained within an ascending parallel channel and caused a deviation above the $0.80 horizontal area. If the decline continues, the MATIC price is expected to reach $0.41, coinciding with the long-term $0.40 horizontal support area.
Hot Take: Potential Rebound for MATIC Price
The MATIC price prediction suggests a decrease to $0.40 followed by a significant bounce. However, if the price manages to reclaim the $0.60 area, it could indicate that the bottom is in and lead to a 40% increase towards the next resistance at $0.80.
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