The Polygon (MATIC) Price Fails to Break Out from Descending Resistance Trend Line
The MATIC price has been unable to break out from a descending resistance trend line that has been in place for 750 days. This trend line has rejected multiple breakout attempts, including a recent one that resulted in a bearish engulfing candlestick. Despite this, the Relative Strength Index (RSI) indicates bullish signs, with readings above 50 and a hidden bullish divergence suggesting a continuation of the upward trend.
Polygon Creates Bearish Candlestick
MATIC has fallen under a descending resistance trend line since its all-time high in December 2021. Although the price has increased since its low in June 2022, it has failed to break out from the trend line. The rejection of breakout attempts is evident in the chart, with the most recent rejections occurring in November and December 2023.
MATIC Price Prediction: Can Price Sustain the Bounce?
On the daily time frame, there are two potential scenarios for the future movement of MATIC. The bullish count suggests that MATIC has completed a corrective structure and is now entering the fifth wave, which could lead to a 40% increase in price. On the other hand, the bearish count suggests that the upward movement is complete and MATIC is now in a correction phase, which could result in a 22% regression.
Hot Take: The Future of MATIC Hangs in the Balance
The future direction of MATIC will depend on whether it breaks out or down from its current channel. A breakout could lead to a significant increase in price, while a breakdown could result in a notable decrease. Traders should closely monitor these key levels to make informed trading decisions.
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