The MATIC Price and Long-Term Resistance
The price of Polygon (MATIC) recently formed a bullish candlestick, but it is still trading below the $50 horizontal resistance level. On September 29, the price also broke out from a shorter-term descending resistance trendline.
MATIC Reached Long-Term Resistance
When analyzing the weekly timeframe, we can see that the MATIC price experienced a significant increase last week, forming a bullish engulfing candlestick. However, despite this increase, the price is still trading below the long-term $0.60 horizontal resistance area. This area has acted as both support and resistance since May 2022, making it an important level to watch for determining the trend’s direction.
The weekly RSI (Relative Strength Index) does not provide clear indications of the trend’s direction. Traders often use the RSI as a momentum indicator to determine if a market is overbought or oversold and make decisions regarding buying or selling assets. Currently, the RSI is increasing but remains below 50, indicating mixed signals and uncertainty in the cryptocurrency’s trend.
MATIC Price Prediction: Has the Reversal Begun?
On the daily timeframe, the technical analysis for MATIC shows a bullish trend. On September 29, the price broke out from a descending resistance trendline that had been in place since February 28, when MATIC reached its yearly high at $1.57. Additionally, a bullish divergence in the daily RSI preceded the breakout. This divergence occurs when there is an increase in momentum alongside a decrease in price and often leads to significant bullish reversals.
Based on these factors, the MATIC price prediction is considered bullish. If the upward movement continues, the next resistance level at $0.85 is approximately 50% higher than the current price. It’s also worth noting that Google Cloud has joined the Polygon network as an official validator, staking over 10,000 MATIC.
Hot Take: MATIC Faces Potential Retracement
Despite the bullish price prediction for MATIC, it is important to monitor its performance closely. A close below the October 1 opening of $0.53 could indicate a further retracement before the upward movement can continue. In such a scenario, MATIC may fall by 17% to the descending resistance trendline at $0.46.
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