The Polygon (MATIC) price experienced a significant decline on December 11, retracing to a long-term horizontal support area. Analysis of the daily time frame Relative Strength Index (RSI) and wave count suggests a correction in MATIC prices. Despite bearish predictions, a move above the wave B high of $0.95 would indicate the end of the correction. The MATIC price has been falling since November 14, resulting in a lower high on December 9.
Polygon Struggles to Sustain Increase
Technical analysis on the daily time frame reveals that MATIC prices had been increasing since October when it broke out from a descending resistance trend line. The upward movement led to a peak of $0.98 on November 14. Following the breakout, MATIC cleared a crucial horizontal resistance level that had been in place since June. However, it fell below it, creating a lower high in December (red icons).
The Relative Strength Index (RSI), a momentum indicator, is above 50 but falling. A bearish divergence (green line) signals diminishing momentum.
What Are Analysts Saying?
Cryptocurrency traders and analysts are largely bullish on the future MATIC price trend. Dark Green tweeted about a long-term symmetrical triangle, drawing parallels to the 2021 movement when MATIC accelerated its increase after breaking out from a similar pattern. Crypto Dave is also bullish and anticipates MATIC breaking the $0.96 level, reaching $1 before the year ends, and staying bullish as long as above the $0.72 level.
It’s noteworthy that the Polygon team announced the completion of a test version of the Polygon Miden node, which will perform various functions including exposing RPC endings, verifying user-generated proofs, producing blocks, and storing and updating the state.
MATIC Price Prediction: Will $0.85 Area Hold?
Technical analysts use the Elliott Wave theory to identify recurring long-term price patterns and investor psychology. The most likely count suggests that MATIC completed a five-wave upward movement starting in September and is now in the C wave of an A-B-C corrective structure, supported by a bearish divergence in the daily RSI.
If the MATIC price fall continues, the target for the bottom of the C wave is at the 0.618 Fib retracement support level at $0.68, implying a 20% drop. Despite this bearish prediction, moving above the wave B high of $0.95 could lead to a 35% increase to the next resistance at $1.15.