MATIC Price Faces Hurdles Around $1 Mark – Can it Break Through a 700-Day Resistance?

In Brief

The Polygon (MATIC) price created a bearish weekly candlestick last week after four consecutive bullish ones. The weekly time frame Relative Strength Index (RSI) and price action are both bullish, suggesting a potential breakout. However, another rejection from long-term resistance could lead to a drop. The MATIC price nearly reached $1 last week but faced rejection on November 14.

MATIC Trades Inside Long-Term Resistance

The technical analysis from the weekly time frame reveals that MATIC has been on an upward trajectory since breaking out from a descending resistance trend line in September. The rate of increase accelerated in October, reaching a high of $0.98 last week.

While the last week’s candlestick was bearish (red icon), MATIC had previously created four bullish candlesticks leading to the high. Additionally, the upward movement took MATIC above the $0.85 horizontal resistance area. Although the price did not reach $1, it has fallen slightly and now trades inside this area.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum indicator used by traders to evaluate market conditions. Readings above 50 and an upward trend suggest bullish momentum, while readings below 50 indicate the opposite.

Analysts Predict an Upward Movement

Cryptocurrency analysts on X are mostly bullish on the future MATIC price trend. ZAYKCharts believes a long-term breakout from the current pattern is likely, potentially leading to a new all-time high. NebraskanGooner and Nihilus are also bullish in the short term, outlining a continuation pattern seen in numerous altcoins.

MATIC Price Prediction – Clearing the 700-Day Trend Line

Examining the MATIC price decrease since the all-time high reveals a descending resistance trend line in place for nearly 700 days. MATIC moved above this trend line last week (red icon) but failed to break out, creating a bearish candlestick and falling below it.

Despite this setback, the weekly RSI remains bullish, supporting the possibility of an increase. Furthermore, the MATIC price has moved above the long-term horizontal resistance area at $0.75, likely to provide support. If MATIC breaks out, a 70% increase to the next horizontal resistance at $1.50 is possible.

However, failure to break out from the long-term trendline could result in a 10% drop to the closest support at $0.75.