MATIC Price Falls After Reaching 700-Day Resistance
The price of Polygon (MATIC) has declined since reaching a local high of $0.98 on November 14. This decrease has caused the price to deviate above a significant horizontal area, which is now acting as resistance. The question is, how long will this downward trend continue?
MATIC Reaches 700-Day Resistance
Looking at the weekly time frame, MATIC has been trading below a descending resistance trend line since its all-time high in December 2021. This trend line has been in place for 700 days and resulted in a rejection two weeks ago. However, MATIC is still trading within a critical horizontal area that has acted as both support and resistance since April 2022.
Mixed Outlook for MATIC Price Prediction
On the daily time frame, the outlook for MATIC is mixed. The deviation and subsequent drop below the $0.86 horizontal area have created uncertainty. While the price briefly moved above this level on November 12, it failed to sustain its increase and fell afterward. The price then dropped to the 0.5 Fib retracement support level of $0.74.
The daily RSI also provides a mixed reading. Although the indicator is falling, it still holds above a bullish divergence trend line that has been in place since August.
Key Levels to Watch
The reaction to the $0.74 support level will be crucial in determining the future trend for MATIC. If the price bounces at this level and surpasses $0.85, it could see a 60% increase and reach the next resistance at $1.25.
However, if there is a breakdown below the $0.74 support level, it is likely to trigger a 25% price decrease, with the next closest support at $0.60.
Hot Take: MATIC’s Price Movement Hangs in the Balance
The price of Polygon (MATIC) is currently facing resistance after reaching a local high and is trading within a critical horizontal area. The future trend will depend on whether the price can bounce at the support level or break down below it. Traders are closely watching key levels to determine the next move for MATIC.
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