The Polygon (MATIC) price saw a bounce after the team announced a new upgrade on transaction fee calculations. However, MATIC is still trading within a bearish pattern that has been in place for almost 60 days.
Polygon Deviates Above Long-Term Resistance
Since December 2021, the MATIC price has been below a long-term descending resistance trend line, reaching a low of $0.32 in June. Despite attempts at an upward movement, MATIC faced rejections from the trend line multiple times. Although it broke out in December, the breakout was short-lived as the price fell below the trend line again.
Traders often use the Relative Strength Index (RSI) to determine momentum and overbought/oversold conditions. The weekly RSI for MATIC is currently above 50 but falling, indicating an uncertain trend.
What Do Analysts Think?
Cryptocurrency traders and analysts have a bullish outlook on MATIC’s future price trend. Captain Faibik predicts a 600% rally once the price breaks out from its long-term pattern.
Last week, the Polygon team announced a new upgrade for transaction fee calculations on the Polygon zkEVM. This mechanism aims to provide users with more accurate and complete transaction fees based on execution and data availability.
MATIC Price Prediction: What to Make of Yesterday’s Bounce?
The daily time frame shows mixed readings for MATIC due to its recent price action. While it has been trading inside an ascending parallel channel since November 2023, this pattern is considered bearish and often leads to breakdowns. MATIC has fallen since being rejected by the channel’s resistance trend line but yesterday’s bounce saved it from potential breakdown.
The daily RSI is also inconclusive at 50. Whether MATIC breaks down from the channel or continues its bounce will determine its future price prediction.
A breakdown from the channel could result in a 19% decrease to the nearest support at $0.65, while a strong bounce could lead to a 40% upward movement to the channel’s resistance trend line at $1.16.
Hot Take: MATIC’s Price Outlook
The recent bounce in the MATIC price offers some hope for a potential reversal in its long-term bearish pattern. However, there are still challenges ahead as it remains within the descending resistance trend line. Traders and analysts have varying opinions on MATIC’s future, with some predicting a significant rally once it breaks out from the pattern. The recent upgrade on transaction fee calculations could also positively impact MATIC’s price if it improves user experience and attracts more investors. Overall, it’s crucial to monitor the price action and key levels to make informed decisions about investing in MATIC.
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