Polygon (MATIC) has recently surged out of a brief downtrend pattern, aiming to overcome a persistent long-standing resistance barrier. Currently it is priced at $0.5368 which is 0.86% higher. It is important to note at this point that a successful breakthrough could potentially trigger a substantial price surge, whereas a failure to breach the resistance might prompt a descent towards the nearest horizontal support zone.
Polygon Price Faces Resistance Challenge
While analyzing the daily MATIC chart, it can be observed that a persistent struggle beneath a descending resistance trendline that has been in place since February 28, coinciding with its yearly peak at $1.57. Initially descending from the $0.60 horizontal support zone, it confirmed this level as resistance on August 29. This confirmation coincided with the final touchpoint on the descending resistance line, underscoring a bearish trend.
Subsequently, the MATIC price has not revisited this trendline. Should MATIC manage to break free from this resistance, it could potentially surge from this point. Conversely, another rejection could trigger a decline toward the nearest support at $0.35.
RSI Signals Potential Bullish Reversal
Despite the prevailing bearish sentiment in the price action, the daily Relative Strength Index (RSI) of MATIC is hinting at a possible shift towards a bullish reversal. Traders can employ the RSI as a momentum indicator to gauge whether a market is in an overbought or oversold condition, aiding them in strategic decisions related to asset accumulation or liquidation.
An RSI reading above 50 during an upward trend is a favorable signal for bullish sentiment, while a reading below 50 suggests the opposite scenario. Although the RSI of MATIC currently remains below the 50 mark, it is showing a rising trend and is currently sitting at 38.25. More importantly, it has generated notable bullish divergence, denoted in the chart above. This divergence occurs when an increase in momentum accompanies a decline in price, often indicating the potential for a bullish trend reversal.
In the case of MATIC, this divergence suggests the possibility of a breakout from the long-term descending resistance line. Consequently, the most plausible MATIC price prediction leans towards a breakout from the resistance line, driving the price towards the support level at $0.65. Nonetheless, should the price face rejection at the resistance line, a retracement towards the $0.45 horizontal support area could be the anticipated path forward.
MATIC Resilience Amidst Market Volatility, Potential for Upside Breakout (27 August 2023)*
Polygon (MATIC) is currently trading at $0.5482 with a 0.40% increase in market cap. After breaking down from consolidation around $0.7, MATIC showed vulnerability, dropping below $0.55. Recent increased volatility suggests a potential breakout. Despite a corrective phase following Bitcoin’s decline, MATIC has remained resilient compared to other altcoins. While it maintains support around current levels, both bullish and bearish scenarios are possible given the ongoing correction. A descending wedge pattern hints at a possible bullish reversal, but market conditions may also extend the bearish trend, possibly pushing prices below $0.35 or surpassing $0.9 under favorable conditions.
Polygon (MATIC) Downward Trend (6 August 2023)*
Polygon (MATIC) currently trades at $0.6714, having dipped from its July peak of $0.89, suggesting waning interest at lower prices. Should MATIC surpass the $0.65 support level, a bullish defense is anticipated. Bouncing off this support and surpassing moving averages could signal an upward move to $0.80. Conversely, breaching the $0.65 level indicates continued bear control, possibly targeting the $0.60 support. Key indicators play a role:
- Moving Averages: The 50-day SMA near $0.70 offers support, while the 200-day SMA around $0.96 poses resistance. Crossing the 200-day SMA might signal a bullish shift.
- RSI: Currently below 50, the RSI suggests oversold conditions. Crossing above 50 could indicate bullish momentum, while below 50 might imply further decline.
- MACD: The balanced MACD (blue) near the signal line (orange) hints at market equilibrium. Histogram shifts could signal trend changes.
- Fibonacci Retracement: Critical support at 38.2% level ($0.70) coincides with the 50-day SMA. Breaking 23.6% level ($0.80) might lead to gains.
MATIC’s short-term outlook centers on $0.65 and $0.80 levels, while monitoring indicators guides trend assessment and potential price shifts.
