Polygon (MATIC) Price Hits New Yearly Low
The price of Polygon (MATIC) recently dropped to its lowest point of the year, breaking through the $0.60 resistance area. Despite the fact that another low is anticipated before a probable reversal, there are some positive trend signs to consider, particularly in relation to the Relative Strength Index (RSI).
Daily Technical Analysis
And once analyzing MATIC on a daily timeframe, it’s clear that there is a bearish trend. Since reaching its yearly high of $1.57 on February 28, the price has been below a descending resistance line. The recent breakdown from the $0.60 support area confirmed it as resistance on August 29.
As a result of this rejection, MATIC hit a new yearly low of $0.51 on September 10. This represents a 67% decrease in the previous 208 days. If the downtrend continues, the next level of support to watch for is at $0.34.
Bullish RSI Signals
Regardless of the bearish price action, there are positive indications from the daily RSI. The RSI is a trending momentum indicator used by traders to identify overbought or oversold conditions and make decisions about buying or selling assets.
Despite the fact that the RSI remains under 50, it has been gaining and forming higher lows. In addition, it has generated a positive trend divergence, which often leads to trend reversals.
MATIC Price Prediction: Elliott Wave Analysis
An examination of MATIC’s Elliott Wave count implies that while the outlook is bearish, a bottom could be approaching. The fourth wave exhibited characteristics commonly seen in corrective movements.
If the downtrend continues, MATIC is expected to complete its fifth and final wave around $0.41, which corresponds to the 1.27 external Fibonacci retracement level of wave four. Nonetheless, if MATIC manages to reclaim the $0.60 level, it might indicate that the lowest has been reached.
Hot Take: Probable Rebound Ahead for MATIC
The recent fall in the price of Polygon (MATIC) to a new yearly low suggests a bearish trend. Nonetheless, there are indications that a reversal could be on the horizon. The RSI is showing positive trend signs, and the Elliott Wave analysis implies that a bottom may be reached soon.
If the downtrend continues, MATIC’s price could decline further before potentially rebounding. On the other hand, if MATIC manages to reclaim the $0.60 level, it might indicate that the lowest has been reached and a whole lot of price increase may follow.
Keep an eye on these factors as you consider your next move with MATIC.
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