The Polygon (MATIC) token price surged above $1 today, making a significant bullish breakout. It is currently in the process of breaking through a 730-day descending resistance line that has been present on the chart since its all-time high.
In December 2021, MATIC reached an all-time high of $2.90 but has been declining since then. However, the coin started to rise again and attempted multiple bullish breakouts, which were unsuccessful. This week, the bulls finally succeeded.
Today, MATIC recorded a high of $1.07, the highest level since April. However, it hasn’t yet demonstrated a weekly close above the resistance trend line.
Analysts on Platform X are bullish on MATIC’s prospects. They believe that the upward movement will continue, citing rebounding from long-term support areas and potential breakouts from triangle patterns and bullish cup and handle patterns.
The daily timeframe is giving bullish signals, with Elliott wave analysis suggesting that MATIC is in the fifth and final wave of the upward movement. The first target for this wave is at $1.20, with a second target at $1.50.
However, a close of MATIC below the horizontal support area of $0.95 could indicate that the top has already been reached, potentially leading to a 30% price drop to the nearest support at $0.75.
Overall, while there are positive indicators and analyst forecasts, traders should monitor the price movements closely and be aware of potential support and resistance levels.
Source: TradingView
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