Long-term and short-term indicators are not consistent with each other. Thus, the price made a bullish breakdown of the descending resistance line, which was 140 days old.

Breaking of such long-term levels means that the previous movement is over and a new one, in the opposite direction, has started.

Despite this breakout, MATIC has yet to initiate any significant upside movement. This confirms the likelihood of the start of a new bullish trend.

MATIC forecast: a key level that will determine the direction of the trend

While the daily timeframe is decidedly bullish, the shorter-term six-hour chart questions the legitimacy of the breakout.

Although price has been rising since June 10, it is inside an ascending parallel channel. This pattern is considered bearish, which could eventually end up in a bearish breakout.

The pattern is considered bearish.

In addition, on July 12, the MATIC price was pulled back from the area of convergence of resistance levels (red circle). The channel resistance line and the Fibo 0.5 retracement level form resistance here.

Fibonacci levels are traditionally considered the most likely springboards for price to stop and reverse after a significant advance in one direction. As expected, at these levels, the market may regain some of the distance traveled and only then resume moving in the original direction. In addition, they can determine the limits of the price move.

Hence, the failure of the price to rise above the Fibo 0.5 level may indicate that the upward movement is corrective and a bearish breakout from the channel awaits us. If that does happen, MATIC will likely fall back to the June 10 lows at $0.51.

And if that does happen, MATIC will likely fall back to the June 10 lows at $0.51.
Source: TradingView

Despite this bearish short-term outlook, a breakout of the upper channel boundary and the $0.74 resistance area would indicate that the trend is bullish. In this case, MATIC could head towards the nearest resistance at $0.90.