Polygon Price Attempts Breakout From Resistance
The price of Polygon (MATIC) is currently attempting to break above a long-term descending resistance line. This breakout will have a significant impact on the future trend of the cryptocurrency.
In the daily timeframe analysis, we can see that MATIC’s price has been below a descending resistance line since February 28. It broke down from the $0.60 support level on August 29 and confirmed it as resistance. This marked the last touch on the descending resistance line, indicating a bearish trend. However, MATIC is now making a breakout attempt.
If the price manages to break above this line, there is potential for a 60% increase, reaching the $0.85 resistance level. On the other hand, if it faces rejection again, a 35% drop to the nearest support level at $0.35 could be expected.
RSI Signals Potential Shift Towards Bullish Trend
Despite the prevailing bearish sentiment, the daily Relative Strength Index (RSI) is signaling a potential shift towards a bullish trend. The RSI is currently below 50 but on the rise. It has also exhibited significant bullish divergence, which often precedes bullish trend reversals.
MATIC Price Prediction: Will Short-Term Breakout Catalyze Increase?
On the shorter-term six-hour timeframe, there are conflicting readings. On one hand, the price broke out from a descending wedge pattern, indicating a bullish trend. On the other hand, it fell below the $0.53 horizontal area instead of validating it as support.
The $0.53 area is crucial as it has acted as both support and resistance in recent weeks. Whether the price reclaims it or falls below will determine the future trend. The six-hour RSI is currently at 50, indicating an undetermined trend for MATIC.
The future MATIC price prediction will depend on whether Polygon reclaims the $0.53 area and breaks out from the long-term resistance line. This could lead to a 60% increase. However, a rejection could result in a 35% drop.
Hot Take: Polygon Price Faces Crucial Breakout Decision
The price of Polygon (MATIC) is at a crucial juncture as it attempts to break above a long-term descending resistance line. A successful breakout could lead to a significant increase in price, while a rejection could result in a sharp decline. The daily RSI signals a potential shift towards a bullish trend, adding to the positive sentiment for MATIC. On the shorter-term timeframe, conflicting readings make the future trend uncertain. Whether Polygon reclaims the $0.53 area and breaks out will be key in determining the next move for MATIC. Traders should closely monitor these levels for potential trading opportunities.
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