Polygon (MATIC) is currently trading above a key horizontal area that has been transitioning between support and resistance for nearly three years.
Polygon is currently holding above the support level.
On the weekly timeframe, it is evident that MATIC has remained above this long-term horizontal support area for over 90 days. This area has been acting as both support and resistance since April 2021.
Although MATIC briefly dropped below this area two weeks ago, it quickly recovered and formed a long lower wick (green icon). Despite the rebound, the token has not experienced significant growth and is currently trading within the horizontal support area.
Source: TradingView
The Weekly Relative Strength Index (RSI) is showing bullish signals. The indicator recently bounced off the 50 level (green circle) in conjunction with the price bouncing off the horizontal support area, further supporting a potential rise in value.
Traders and analysts on the X platform have expressed optimism about the future of Polygon. ColdBloodShill believes that the coin has one of the most promising charts in higher timeframes due to its recovery above the support level:
Weekly chart MATIC/USDT. Source: X
WorldofCharts anticipates that MATIC could experience a 50% increase once it breaks out of the falling wedge technical pattern.
CryptoAnup shares a similar forecast, using a longer-term wedge pattern for their prediction.
MATIC forecast: Is a rebound likely?
The daily timeframe suggests a bullish outlook based on price action. On January 23, MATIC found support at the $0.72 horizontal level and subsequently broke through the descending resistance line six days later.
Although MATIC’s price has experienced a slight decline since then, it still remains close to the breakout level. Therefore, a retest of the broken resistance line as support could be possible.
Additionally, the daily RSI is on the rise. A break above the 50 level would confirm the legitimacy of the upward movement. If the growth continues, Polygon could potentially rise by over 30% to reach the next horizontal resistance area near $1.05.
Source: TradingView
Conversely, a break of the minor support at $0.72 would invalidate the bullish breakout scenario. In such a case, MATIC could potentially fall by 22% to reach the next nearest support level at $0.60.
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