Polygon finally made a bullish breakout
The weekly timeframe shows that MATIC broke the 780-day descending resistance line last week. The weekly close was the highest since April 2023.
Although Polygon's price has declined slightly since the breakout, it tested the resistance line again this week as support, which is a common move after such breakouts.
Despite breaking through this long-term diagonal resistance, the token has yet to break through key horizontal resistance, which has alternated between support and resistance since July 2021.
Source: TradingView
However, the weekly relative strength index (RSI) is showing positive signals. It is above the neutral level of 50 and rising, indicating an upward trend.
MATIC forecast: is the $1.50 level reachable?
The daily timeframe confirms the bullish conclusions of the weekly chart. Thus, price dynamics show that the token has broken through the upper limit of its range at $0.95 and confirmed it as support (green icon). This move was combined with an underlying bullish divergence in the daily RSI (green line), which often results in a continuation of the trend.
Wave analysis also promises the price to continue growing above the $1 mark. The most likely scenario suggests that MATIC is in the third wave of a five-wave upward movement. If the third wave is the same length as the first, this would give us a high of $1.55, which is 60% higher than the current price.
Source: TradingView
Despite the bullish outlook, a daily close below $0.95 would indicate that a local top has already been reached. In this case, Polygon's price could fall by 25% to the nearest support at $0.74.
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