The price of Polygon (MATIC) has been decreasing since December 17, 2023, and it recently fell below a horizontal resistance area. However, it is still trading above an ascending support trend line, which raises the question of whether it can initiate a bounce.
Polygon has fallen below the $0.95 horizontal resistance area on the daily time frame since November 2023. Although it briefly moved above this area in December, it quickly dropped back below it, making the breakout a deviation. The resistance area has rejected the MATIC price three times, and after the final rejection, MATIC returned to an ascending support trend line.
The daily RSI indicates a bearish reading. The RSI is used by traders as a momentum indicator to determine if a market is overbought or oversold and whether to buy or sell an asset. With the RSI falling and below 50, both signs point to a bearish trend.
Despite the price action and RSI showing bearish signals, news about Polygon remains positive. A report by Electric Capital highlighted that Polygon attracted the second most new developers in 2023, surpassing other chains except for Ethereum.
Looking at the movement over the past five months, there is a bearish outlook for MATIC based on Elliott Wave theory. The most likely wave count suggests that MATIC has completed a five-wave upward movement and has started an A-B-C correction. If this is true, MATIC is currently in the C wave of this correction. The expected bottom level for MATIC is around the $0.63 horizontal support area.
Despite this bearish prediction, if MATIC moves above wave B’s high of $0.96, it could indicate that the local bottom is in and lead to an increase of nearly 37%, reaching the previous high at $1.10.
In conclusion, while the current trend for Polygon (MATIC) appears bearish, there is a possibility of a bounce if certain levels are breached. However, it is important to conduct your own research and seek professional advice before making any financial decisions.
Hot Take: Can Polygon (MATIC) Reverse Its Bearish Trend?
Despite the recent decline in price, Polygon (MATIC) still holds potential for a reversal. While technical analysis and indicators suggest a bearish outlook, positive news about Polygon’s developer growth provides some optimism. The key lies in breaking above the resistance level and regaining bullish momentum. It remains crucial to stay informed and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.
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