MATIC broke through long-term resistance
Weekly timeframe shows MATIC rising since June 2022. After forming an increasing low in October 2023, the token accelerated its growth rate.
Last week, the price broke through a descending resistance line, which was almost 800 days old and was built from the all-time high of December 2021. Previously, MATIC made several unsuccessful attempts to break through it (red icons).
Source: TradingView
Weekly Relative Strength Index (RSI) is giving a bullish signal. The indicator bounced off the neutral 50 level during the bullish price breakout, thereby reinforcing the breakout.
Cryptocurrency traders and analysts on the X platform are optimistic about Polygon's prospects. Thus, CryptoBusy identifies the “cup and handle” technical pattern and believes that the price will rise to $3.
Weekly chart MATIC/USDT. Source: X
NFT Cryptomaniac has the same opinion:
“There is nothing new here! I will let you know if anything changes, otherwise just close your eyes and you will open them at $1.80-$1.90-$2.00 levels depending on fomo.”
Polygon forecast: can the price reach $2
The 3-day time frame also gives a bullish outlook, supporting the weekly chart. Price action shows MATIC approaching the top of its long-term range (white) at $1. This range has been present on the chart since July 2022.
Elliott wave analysis also suggests that a bullish breakout will occur. According to the most likely scenario, the token is in the third wave of a five-wave upward movement.
Finally, the 3-day RSI also supports a breakout, having recently moved above 30.
The ratio of the first and third waves as 1:1 gives us a maximum of $1.55, which is 55% higher than the current price. If the third wave extends to a ratio of 1.61 to the length of the first wave, it could reach $2.05, which is 110% higher than the current price.
Source: TradingView
Despite this bullish outlook, a price bounce from the range high could trigger a 30% drop towards the mid-range at $0.70.
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