Polygon (MATIC): Will Long-Term Support Hold?

In November 2023

Polygon consolidates above support level

The weekly chart shows that MATIC has been rising since October 2023. A month later, the price broke through the horizontal resistance area, and in December it reached a new yearly high of $1.09.

Although the price has fallen since then, it is still holding above the horizontal area, which now acts as support. The token rebounded in January 2024, forming a long lower wick (green icon). However, Polygon is trading below its 780-day long-term descending resistance line.

Source: TradingView

Meanwhile, the weekly Relative Strength Index (RSI) is giving bullish signals as it stays above the neutral level of 50 (green circle).

MATIC forecast: has a reversal begun?

While the weekly timeframe is bullish, the daily timeframe is less certain.

The chart shows that Polygon has been growing since January 23, breaking through the descending resistance line five days later. This allowed the coin to set a high of $0.87 on February 10th.

ColdBloodShill believes MATIC will break through resistance soon. He comments:

“$MATIC seems to do that trick where it’s like, ‘haha, I’m so weak at the resistance, oooh, please short me,’ and then BAM, it surges higher.”

However, MATIC was pushed back by the 0.382 Fibonacci retracement and has been declining since then. This also caused a drawdown in the RSI index, which almost dropped below 50.

Due to mixed signals, price action around the 0.382 Fib resistance level will be key to determining the future trend.

Source: TradingView

A bullish breakout could trigger a 13% rise for Polygon towards the next resistance at $0.92, while a bounce could trigger a 12% fall towards the nearest support at $0.72.

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