Polygon’s (MATIC) price recently surpassed a significant milestone by breaking out from a descending trend line that had been in place since its all-time high in December 2021.
The price of Polygon (MATIC) has also reached the upper boundary of a long-standing horizontal trading range. Now, the big question is: will it break out above this level or face rejection?
Polygon (MATIC) Breaks Long-Term Resistance Trend Line
Polygon (MATIC) has shown a steady increase in price since June 2022, with a notable uptrend observed after creating a higher low in October 2023. Last week, MATIC experienced a significant breakthrough as its price surpassed a descending resistance trend line that had been in place for almost 800 days, originating from its all-time high in December 2021. Prior to this breakout, MATIC had made several unsuccessful attempts to breach this resistance line, as indicated by previous failed breakout attempts.
MATIC/USD Weekly Chart. Source: TradingView
The weekly Relative Strength Index (RSI), a commonly used momentum indicator in the market, provides a bullish signal for MATIC. Traders often rely on the RSI to gauge whether an asset is overbought or oversold and to make decisions regarding accumulation or selling. When the RSI readings are above 50 and trending upwards, it suggests that bulls are in control, whereas readings below 50 indicate the opposite. In the context of MATIC’s recent breakout, the RSI bounced at the 50 level, aligning with the price breakout and validating the bullish momentum.
Positive Outlook for MATIC Price by Analysts on X
Cryptocurrency traders and analysts on X are expressing optimism about the future trend of MATIC. CryptoBusy is particularly bullish, predicting that MATIC will surge to $3 due to the formation of a cup and handle pattern. Similarly, NFT Cryptomaniac shares this optimistic outlook.
MATIC/USDT Weekly Chart. Source: X
In agreement with the positive sentiment, Don Of Charts suggests that the MATIC price is poised to reach the next resistance level at $1 in the near future. This further reinforces the positive trajectory anticipated for MATIC’s price movement.
Bullish Signals for MATIC Price on 3-Day Time Frame
The analysis from the 3-day time frame aligns with the bullish sentiment observed on the weekly chart. This bullish outlook is supported by various factors, including price action, wave count, and RSI readings.
Firstly, the price action indicates that MATIC is nearing the top of a long-term range, marked in white, with a key resistance level at $1. This range has been in existence since July 2022, suggesting significant historical significance.
Additionally, the wave count analysis suggests that a breakout is likely imminent. Utilizing the Elliott Wave theory, technical analysts study recurring long-term price patterns and investor psychology to determine the trend’s direction. The prevailing wave count indicates that MATIC is currently in wave three of a five-wave upward movement, which typically signifies strong bullish momentum.
Lastly, the 3-day RSI adds further credence to the potential breakout scenario. The RSI recently crossed over the 30 threshold, indicating oversold conditions, and now supports the breakout narrative by showing signs of bullish momentum. This convergence of bullish signals on the 3-day time frame strengthens the overall bullish outlook for MATIC’s price movement.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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