The potential for a Polygon price surge is imminent, although it may be followed by a final dip that could mark the end of the MATIC correction period.
As the native token of the Polygon network, which serves as a popular second layer scaling solution for Ethereum blockchain, MATIC has been subject to technical analysis, revealing a promising trend.
Early in the year, the MATIC rate rebounded from the $0.77 support level and showed signs of strengthening, ultimately reaching a peak of $1.54 by February 18.
While initial recovery above the $1.35 resistance level seemed promising, it turned out to be a temporary aberration (indicated by the red circle), and the price soon dropped again.
Despite bullish indicators such as a weekly RSI that broke above the descending resistance line and 50 mark, the bearish price trends suggest a likely fall towards the $0.77 support level.
That said, a close above $1.35 could propel MATIC to $2, signaling a significant upward shift in the Polygon price. As the market continues to fluctuate, investors should keep a close eye on MATIC’s performance to capitalize on potential opportunities.
Source: Trading View
According to the daily chart, it appears that the correction is far from over. Despite the possibility of a rally, another round of price cuts may be on the horizon. Several factors support this projection.
Firstly, a wave analysis of Polygon suggests that a five-wave bullish structure (in black) has been completed, followed by an A-B-C corrective structure.
Secondly, MATIC has broken through its ascending support line, and thirdly, the daily RSI is below 50, signaling a bearish trend.
Based on these factors, it is probable that the A-B-C correction will be completed in March, around the Fibo level of 0.618 correction at $1.06.
Presently, the price is in wave B of the A-B-C correction structure. After the initial relief rally, which ends wave B, a final decline towards $1.06 is likely.
However, if the price drops below $0.75, it could cancel the long-term bullish outlook and send the coin tumbling towards $0.50.
Source: Trading View
The current market conditions suggest that a possible relief rally towards $1.40 could be followed by a drop towards $1.06 for Polygon in March.
A few key factors indicate this trend, including wave analysis that shows a completed five-wave bullish structure (in black) followed by a corrective structure A-B-C, the breaking of the ascending support line by MATIC, and a daily RSI below 50.
Investors should be aware that if the price falls below $0.75, it could cancel the long-term bullish outlook and potentially send the coin plummeting to $0.50.
Conversely, if MATIC manages to break above its current high of $1.54, it could indicate the end of the correction, potentially leading to a rise towards $2.
It’s important to stay up-to-date on market trends and to keep a close eye on MATIC’s performance to make informed investment decisions. As the market continues to fluctuate, investors should remain vigilant and adaptable in their strategies.