The Polygon (MATIC) price attempted to break out from a descending resistance trend line but was unsuccessful. However, it is currently trading above its main support area. Let’s analyze the technical indicators and what analysts are saying.
MATIC Makes Another Breakout Attempt
On the weekly timeframe, the MATIC price has been under a descending resistance trend line since its all-time high in December 2021. It reached a low of $0.32 in June 2022 and has since made three unsuccessful breakout attempts. The trend line has been in place for 720 days.
The Relative Strength Index (RSI) is currently increasing and above 50, indicating bullish signs.
What Are Analysts Saying?
Analysts have mostly positive views on the future trend of MATIC. Buy Dip Crypto suggests that a parabolic run is likely once the long-term resistance trend line is broken. Masha is bullish for fundamental reasons, noting that despite a price drop, the total amount of MATIC staked is increasing.
MATIC Price Prediction: Bounce or Breakdown?
While the weekly readings lean bullish, the daily timeframe presents a bearish outlook. MATIC has returned to the $0.85 horizontal area after seemingly breaking out above it, with two deviations above this level. The recent highs also show a bearish divergence in the daily RSI.
If the MATIC price closes below $0.85, a 13% decrease to the $0.74 support area is likely. However, reclaiming the $0.85 area could lead to a 45% increase to the next resistance at $1.25.
Hot Take: Will MATIC Break Out or Face Further Decline?
The MATIC price is currently facing a critical juncture as it attempts to break out from a long-term descending resistance trend line. While analysts have positive views on its future trend, the daily timeframe presents bearish signals. If the price fails to hold above the $0.85 level, a further decline to the $0.74 support area is possible. However, reclaiming the $0.85 level could spark a significant rally towards $1.25. Keep a close eye on these key levels to gauge MATIC’s next move.
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