Will Polygon experience a bullish breakout?
The weekly timeframe analysis indicates that the price of MATIC has been gradually decreasing since the start of 2022, staying below the long-term descending resistance line.
This decline brought the token down to a low of $0.32 in June 2022. However, Polygon has recently started an upwards movement, testing the strength of the resistance line four times (represented by red icons), with the most recent test occurring this week. Notably, this resistance line has been in place for almost 800 days.
Crypto trader CryptoFaibik has expressed belief that once this long-term resistance is broken, MATIC’s price could potentially surge by over 600%.
Source: TradingView
The Weekly Relative Strength Index (RSI) is indicating bullish signals. The indicator has rebounded from the neutral level of 50 (green icon) and is currently trending upwards. These signs are typically associated with an uptrend.
MATIC forecast: Can we anticipate the $1 barrier being surpassed?
The daily chart provides a bullish perspective, supported by several factors.
Price action demonstrates that the cryptocurrency has been rising since January 23, rebounding from its range low (represented by the green icon). It has managed to reach a high of $0.93 within the range.
The daily RSI further confirms this upward movement as it is above the neutral level of 50 and continuing to rise (green circle).
Furthermore, Elliott wave analysis suggests a breakout is likely to occur. It is plausible that MATIC is presently in the third wave of a five-wave upward movement. The third wave is often the sharpest and coincides with a bullish breakout of the long-term descending resistance line.
With the first and third waves having a 1:1 ratio, a potential maximum price of $1.54 could be reached, corresponding to a 65% increase from the current price.
Source: TradingView
Despite this optimistic outlook, failure to break through the $0.93 resistance area could trigger a 20% drop to the nearest support level at $0.73.
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