The Polygon (MATIC) Price Breaks Out from Resistance Trendline
The price of Polygon (MATIC) recently broke out from a long-term descending resistance trendline on September 29. However, it is still trading below the $0.60 horizontal resistance area. With FTX and Alameda staking nearly $10 million in Matic, it remains to be seen how the price will react.
MATIC Fails to Sustain Breakout
Technical analysis of the MATIC token price on the daily timeframe shows that it broke out from a descending resistance trendline on September 29. This trendline had been in place since the yearly high of $1.57 on February 18.
Although MATIC moved above the trendline, it failed to reclaim the $0.60 horizontal area and was rejected by it on October 5. As a result, the price began to decline and is now trading close to its yearly low at $0.49.
FTX and Alameda Stake Millions in MATIC Tokens
Three days ago, the estate for the bankrupt exchange FTX staked 5.5 million SOL through Figment and received a 6.99% Annual Percentage Yield. Additionally, wallets associated with Alameda and FTX staked 16.7 million MATIC tokens worth $9.6 million.
This indicates a significant investment in MATIC by these entities, which could potentially impact the price of the token.
MATIC Price Prediction: Can Breakout be Sustained?
Market traders use the RSI as a momentum indicator to determine whether an asset is overbought or oversold. The daily RSI for MATIC showed a significant bullish divergence before the price breakout, indicating a potential trend reversal.
If MATIC manages to close above the $0.60 resistance area, it could see a 60% increase to the next resistance at $0.85. However, failure to exceed $0.60 may invalidate the breakout and result in a 36% drop to the $0.33 support area.
Hot Take: MATIC’s Future Hangs on Resistance Breakout
The recent breakout from the resistance trendline is a positive sign for MATIC, but it needs to surpass the $0.60 resistance area to sustain the momentum. The involvement of FTX and Alameda in staking millions of MATIC tokens adds to the potential impact on the price.
Traders should closely monitor whether MATIC can maintain its upward movement and close above $0.60. If successful, it could see significant gains. However, failure to break this resistance level may lead to a decline in price. Keep an eye on these key levels as they will determine MATIC’s future direction.
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