Polygon broke through long-term resistance
The weekly timeframe shows that two weeks ago the price of MATIC broke the 780-day descending resistance line. This trend line has existed on the chart since the ATH was reached. Today, the token peaked at $1.08, just short of its December 2023 peaks.
However, despite the breakout of the long-term trend, Polygon still remains inside the long-term horizontal resistance area.
Source: TradingView
Weekly Relative Strength Index (RSI) supports this breakout. Against its background, the indicator rebounded from the level of 50 (green circle), which indicates a bullish trend.
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MATIC Forecast: Will $1.50 be the next stop?
Like the weekly timeframe, the daily chart also gives bullish signals. Price action shows that on February 21, MATIC broke through the $0.95 horizontal area and confirmed it as support (green icon).
Elliott wave analysis confirms growth potential. The most likely scenario assumes that Polygon price is in the third wave of a five-wave upward movement. Assuming the first and third waves are the same length, this would give us a maximum of $1.54, which is almost 50% higher than the current price. However, the daily RSI is showing weakness in the form of bearish divergence.
Source: TradingView
Despite the rather optimistic forecast, MATIC could fall 10% to the horizontal support area of $0.95 if the bearish divergence is confirmed. However, this will not invalidate the bullish scenario, but rather mark a temporary decline before resuming the upward movement.
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