The Polygon (MATIC) Price Breakout and Reclaim of Horizontal Resistance
The price of Polygon (MATIC) recently broke out of an ascending parallel channel and successfully validated it as a support level. This breakout also led to the reclamation of the $0.60 horizontal resistance area, indicating a potential trend reversal.
MATIC Reclaims Horizontal Resistance
On the weekly timeframe, the MATIC price has been increasing over the past two weeks, resulting in the reclaiming of the crucial $0.60 horizontal area. Although the price fell below this level in September, its recent reclaim suggests that the previous decrease was only a deviation.
The weekly Relative Strength Index (RSI) is currently undetermined, which means the trend is not clear. The RSI is an important momentum indicator that helps traders determine if a market is overbought or oversold. A reading above 50 with an upward trend indicates an advantage for bulls, while a reading below 50 suggests the opposite.
The Polygon Labs team recently announced
The Polygon Labs team announced last week that the POL token upgrade is now live on the Ethereum mainnet. This upgrade is a significant step for Polygon 2.0 and its ecosystem of Layer 2 chains based on zero-knowledge technology. The POL token will play a crucial role in validating multiple chains and fulfilling various roles within these chains.
MATIC Price Prediction – Has Bullish Reversal Begun?
Looking at the daily timeframe, there are bullish indications for MATIC. The price broke out of an ascending parallel channel and returned to validate it as support. The daily RSI is also above 50 and moving upwards, further supporting a bullish outlook.
If the upward movement continues, MATIC could potentially increase by another 30% and reach the $0.85 horizontal resistance area. However, if the price closes inside the channel’s support line, it would invalidate the breakout and could result in a 20% decline towards the support trendline at $0.52.
Hot Take: Bullish Reversal on the Horizon for MATIC
The recent breakout from an ascending parallel channel and the reclaiming of horizontal resistance indicate a potential bullish reversal for Polygon (MATIC). With the ongoing upgrade of the POL token on the Ethereum mainnet, Polygon is set to further enhance its Layer 2 ecosystem based on zero-knowledge technology. However, it’s important to monitor the price action closely and watch for any invalidation of the breakout to ensure a sustained upward trend.
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