In Brief
The Polygon (MATIC) price faced rejection from a long-term descending resistance trend line that has been in place for 700 days. Weekly and daily Relative Strength Index (RSI) indicators, along with price action, present mixed signals. The reaction to the $0.74 support area will play a crucial role in determining the future MATIC price trend. The price has declined since reaching a local high of $0.98 on November 14, causing a deviation above a significant horizontal area, confirming it as resistance.
MATIC Reaches 700-Day Resistance
Technical analysis on the weekly time frame for MATIC reveals a decline under a descending resistance trend line that has persisted since its all-time high in December 2021. This trend line, in place for 700 days, led to a rejection two weeks ago (marked with a red icon). Despite the rejection, MATIC is trading within a critical horizontal area that has alternately acted as support and resistance since April 2022.
Relative Strength Index (RSI) Analysis
Market traders utilize the Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and to make decisions on asset accumulation or sale. Readings above 50 and an upward trend indicate a bullish trend, while readings below 50 suggest the opposite. The weekly RSI is increasing and is above 50, signaling a bullish trend.
MATIC Price Prediction – What’s the Trend’s Direction?
Similar to the weekly time frame, the daily outlook for MATIC provides a mixed perspective. The deviation and subsequent drop below the $0.86 horizontal area, which has intermittently acted as support and resistance since May 2023, contribute to this mixed outlook. Despite briefly moving above it on November 12, MATIC failed to sustain its increase and fell afterward (marked with a red circle).
The ensuing decrease brought the MATIC price to the 0.5 Fib retracement support level of $0.74. The daily RSI also presents a mixed reading – although the indicator is falling, it still holds above the bullish divergence trend line (marked in green) established since August. Consequently, the reaction to the $0.74 support level will be pivotal in determining the future trend.
Cryptocurrency trader CWTrades anticipates a short-term bounce at the $0.74 support level. If the MATIC price bounces and surpasses $0.85, a potential 60% increase could occur, reaching the next resistance at $1.25. Conversely, a breakdown from the $0.74 support level may trigger a 25% MATIC price decrease to the next closest support at $0.60.
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