The Polygon (MATIC) Price Breaks Out from Resistance Trendline
The price of Polygon (MATIC) has been on the rise since September 11 and recently broke out from a descending resistance trendline on September 19. This breakout led to the price reclaiming the $0.60 horizontal resistance area. Now, the question is whether this marks the beginning of a trend reversal.
MATIC Reclaims Horizontal Resistance
Looking at the daily timeframe, MATIC has shown an increase in price since September 11 and successfully broke out from a descending resistance trendline on September 29. Initially, there was some struggle to move above the $0.60 horizontal resistance area on October 4, but the price created a higher low on October 19 and eventually broke out three days later.
Polygon Announces Upgrades and Partnerships
Polygon recently announced the release of a new version of its Miden Virtual Machine, which is expected to improve performance by 30%. Additionally, they triggered a 10-day timelock for the Inca Berry upgrade on their Mainnet. In other news, Binance announced the launch of a new trading service using the USDC stablecoin on its native Polygon blockchain.
MATIC Price Prediction: A Bullish Outlook
When looking at the weekly timeframe, technical analysis suggests a bullish outlook that supports the ongoing breakout from the resistance trendline. While MATIC briefly fell below the $0.60 horizontal area in September, it quickly reclaimed it. Furthermore, last week saw the creation of a bullish engulfing candlestick, indicating further validation of the breakout and reclamation of the horizontal area.
The Next Resistance Level for MATIC
If the MATIC price continues to rise, the next significant resistance level to watch for is at $0.85, which is approximately 40% above the current price. Some cryptocurrency traders, such as Crypto_Scient, believe that MATIC has the potential to reach this resistance level.
Watch Out for a Weekly Close Below $0.60
Despite the bullish price prediction for MATIC, it’s important to note that a weekly close below the $0.60 horizontal area would invalidate the breakout. In such a scenario, there is a possibility of a 40% price decrease to the June lows at $0.35.
Hot Take: MATIC Shows Promising Signs of Reversal
The recent breakout from the resistance trendline and reclamation of the $0.60 horizontal area indicate a promising trend reversal for Polygon (MATIC). With upgrades and partnerships in the works, including Binance’s new trading service, there is positive momentum surrounding MATIC’s future. However, caution should be exercised as a weekly close below $0.60 could negate this bullish outlook. Keep an eye on the next resistance level at $0.85 as an important milestone for MATIC’s price movement.
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