The Polygon (MATIC) Price and Resistance Trendline
The price of Polygon (MATIC) has seen a slight increase since September 11 as it attempts to break out from a long-term descending resistance trendline. This trendline has been in place since February and plays a crucial role in determining the future direction of the price.
Analysis of MATIC’s Daily Price Movement
An analysis of MATIC’s daily price movement reveals the presence of a descending resistance trendline since February 28. During this period, MATIC reached its highest point of the year at $1.57 but then broke below the $0.60 support level and confirmed it as a resistance on August 29.
This rejection coincided with the last touch on the descending resistance trendline, confirming its validity.
Possible Breakout or Ongoing Correction?
Despite the prevailing bearish sentiment, MATIC has been attempting a breakout from the resistance trendline. A successful breakout would indicate that the correction is complete and a new upward movement has begun. On the other hand, failure to break out would suggest that the correction is still ongoing.
Daily Relative Strength Index (RSI)
Although the price action appears bearish, there are signs of a potential shift towards a bullish trend based on the daily Relative Strength Index (RSI). Currently, the RSI is below 50 but trending upwards. It has also displayed significant bullish divergence, which often precedes bullish trend reversals.
MATIC Price Prediction: Corrective Pattern Supports Bottom
In the six-hour timeframe, MATIC’s price movement is undetermined but more bullish compared to the daily timeframe. The price is trading inside a descending parallel channel, which typically contains corrective movements and suggests an eventual breakout. Additionally, the cryptocurrency is trading above the middle of the channel, indicating a bullish trend.
However, the six-hour RSI does not confirm the possibility of a reversal as it is below 50, signaling a bearish trend.
Possible Outcomes
The MATIC price prediction hinges on whether the price breaks out from the descending resistance trendline or gets rejected. A breakout could lead to a 20% increase to the $0.65 area, while a rejection may result in a 10% drop to the channel’s support line at $0.46.
Hot Take: MATIC Price Faces Critical Moment
The Polygon (MATIC) price is at a critical moment as it attempts to break out from a long-term descending resistance trendline. The outcome of this breakout will determine whether the correction is complete and a new upward movement has begun or if the correction is still ongoing. The daily Relative Strength Index (RSI) shows signs of potential bullish momentum, but further confirmation is needed. Additionally, MATIC’s price movement within a descending parallel channel suggests an eventual breakout. Traders should closely monitor these key levels and indicators to make informed decisions about their MATIC holdings.
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