Polygon (MATIC) Price Hits New Yearly Low
The price of Polygon (MATIC) recently dropped to its lowest point of the year, breaking through the $0.60 resistance area. Although another low is anticipated before a potential reversal, there are some bullish signs to consider, particularly in relation to the Relative Strength Index (RSI).
Daily Technical Analysis
When analyzing MATIC on a daily timeframe, it’s clear that there is a bearish trend. Since reaching its yearly high of $1.57 on February 28, the price has been below a descending resistance line. The recent breakdown from the $0.60 support area confirmed it as resistance on August 29.
Following this rejection, MATIC hit a new yearly low of $0.51 on September 10. This represents a 67% decrease over the past 208 days. If the downtrend continues, the next support level to watch for is at $0.34.
Bullish RSI Signals
Despite the bearish price action, there are positive indications from the daily RSI. The RSI is a popular momentum indicator used by traders to identify overbought or oversold conditions and make decisions about buying or selling assets.
Although the RSI is still below 50, it has been increasing and forming higher lows. Additionally, it has generated a bullish divergence, which often leads to trend reversals.
MATIC Price Prediction: Elliott Wave Analysis
An examination of MATIC’s Elliott Wave count suggests that while the outlook is bearish, a bottom may be approaching. The fourth wave exhibited characteristics commonly seen in corrective movements.
If the downtrend continues, MATIC is expected to complete its fifth and final wave around $0.41, which corresponds to the 1.27 external Fibonacci retracement level of wave four. However, if MATIC manages to reclaim the $0.60 level, it could indicate that the bottom has been reached.
Hot Take: Potential Rebound Ahead for MATIC
The recent drop in the price of Polygon (MATIC) to a new yearly low suggests a bearish trend. However, there are indications that a reversal may be on the horizon. The RSI is showing bullish signs, and the Elliott Wave analysis suggests that a bottom could be reached soon.
If the downtrend continues, MATIC’s price could decline further before potentially rebounding. On the other hand, if MATIC manages to reclaim the $0.60 level, it could indicate that the bottom has been reached and a significant price increase may follow.
Keep an eye on these factors as you consider your next move with MATIC.
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