Polygon examined above long-term resistance levels
The price of MATIC has been gradually declining below a descending resistance line since December 2021, when it reached its highest point at $2.90. This decline was quite rapid, with the token hitting a low of $0.32 in June.
Despite several attempts to recover, MATIC consistently bounced off the descending resistance line (red symbols). After three unsuccessful tries at a bullish breakout, the price finally succeeded in December.
However, this breakout turned out to be false, as the coin formed a bearish candle (red circle) the following week and fell once again below the old trend line that had been in place for over 740 days.
Source: TradingView
The weekly relative strength index (RSI) is currently above the neutral level of 50, but it is showing a declining trend. These conflicting signals indicate an uncertain trend.
Analysts’ opinions
Traders and analysts on Platform X are optimistic about MATIC’s future prospects.
For instance, Captain Faibik predicts a 600% rally once the price successfully breaks out of the long-term pattern.
Weekly chart MATIC/USDT. Source: X
It’s worth mentioning that the Polygon team recently announced an update to the calculation mechanism for transaction fees in Polygon zkEVM. This upgrade will provide users with more accurate and comprehensive information regarding transaction fees.
MATIC forecast: what to expect after yesterday’s rebound
The daily timeframe presents mixed signals. Since November 2023, MATIC has been trading within an ascending parallel channel. This pattern is generally considered bearish and often leads to a bearish breakout.
The price of MATIC is currently declining after rebounding from the channel’s resistance line on December 27. However, yesterday’s rebound prevented a potential bearish breakout, and a bullish hammer candle (green icon) formed on the chart.
The daily RSI also reflects uncertainty in the trend, as it is currently at the neutral level of 50. Consequently, MATIC’s forecast may depend on whether the price breaks out bearishly from the channel or continues its rebound.
Source: TradingView
A bearish breakout from the channel could result in a 19% decline to immediate support at $0.65. On the other hand, a strong rebound could trigger a 40% increase in MATIC’s price towards the channel’s resistance line at $1.16.
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