Price Breakdown and Intensifying Decline
At the beginning of April, Polygon (MATIC) experienced a breakdown from a long-term pattern, and its decline has been getting worse in recent weeks.
- The wave count analysis suggests that there may be some temporary rebound in the price, but the overall trend is still downward.
Polygon Price Bounces but Trend Still Bearish
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On a weekly basis, the technical analysis for MATIC gives a strongly pessimistic outlook.
- The price broke below a long-term ascending parallel channel in April 2023, indicating the end of the previous upward movement.
- The breakdown suggests that the previous increase was corrective in nature, leading to a bearish trend.
- The weekly Relative Strength Index (RSI) is below 50 and declining, indicating a downward trend.
MATIC Price Prediction: Wave Count Gives Bearish Outlook
The short-term daily time frame analysis supports a bearish outlook for MATIC based on the wave count.
- The current price action suggests that MATIC is in the fifth and final wave of a decline.
- The target is a low of $0.39, based on the 1.61 external Fib retracement of wave four.
- The bearish wave count is supported by the price breaking down from an ascending parallel channel.
Hot Take: The analysis indicates that the price of MATIC is likely to continue its downward trend, with a potential target of $0.39. However, if the price manages to reclaim the support line of the ascending parallel channel, there is a possibility of a bounce and a potential increase to $1.30.
