Polygon in the horizontal range
As the results of technical analysis of the weekly chart show, the MATIC picture is bearish for a number of reasons.
Bearish signs emerged as the price made a bearish breakout from the long-term ascending parallel channel. This indicated the end of the previous uptrend and the beginning of a new bearish trend.
Then, in early June, the pace of decline accelerated, which led to a breakdown of the $0.75 area and sent the price to the horizontal support level of $0.53. The price of MATIC is now trading between these two levels.
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Source: TradingView
The weekly Relative Strength Index (RSI) is also bearish, supporting the continuation of the decline. Using RSI as a momentum indicator, traders can determine if the market is overbought or oversold and decide whether to pile on or sell an asset.
Bulls have an advantage if RSI values are above the 50 mark and the trend is up, and vice versa. In the case of MATIC, the RSI index is below 50 (red icon) and is declining, indicating a downtrend.
The indicator fell below 50 at the same time that price made a bearish breakout from the channel, thereby reinforcing that breakout.
Bitcoin Forecast for July
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Will MATIC be able to break through resistance
The shorter-term six-hour timeframe shows that the MATIC price has formed several rising lows. This could be the first sign of a bullish structure.
But the price dynamic also offers bearish signs, such as the presence of an upward parallel channel. These channels are usually associated with corrective moves and lead to bearish breakouts.
Despite the fact that MATIC price is currently trading at the top of the channel, the resistance line of this channel coincides with an important Fibo 0.5 retracement level at $0.74.
So it is likely that the entire price movement is just a relief rally in response to the previous decline.
If this is indeed the case, then the price of MATIC will rise to a high of $0.75 before collapsing to long-term support at $0.53.
If this is the case, then the price of MATIC will rise to a high of $0.75 and then collapse to the long-term support level of $0.53.
Source: TradingView
Despite this bearish outlook for MATIC, a bullish price breakout from the channel would mean that the trend remains bullish.
Since the $0.75 resistance level is both a Fibonacci level and a long-term horizontal resistance area, overcoming it would confirm a bullish trend reversal.
In late June, BeInCrypto’s editorial staff told us that Polygon launched an ChatGPT-based artificial intelligence (AI) bot called Copilot, which had a tangibly positive impact on MATIC.