MATIC makes another breakthrough attempt
The monthly timeframe reveals that MATIC has been undergoing a gradual decline along a descending resistance line since reaching its peak in December 2021. As a consequence, in June 2022, the token plummeted to a record low of $0.32.
Subsequently, the price initiated an upward trajectory, but faced three unsuccessful breakout attempts (indicated by red markers), with the most recent one occurring last week. This long-term trend line has now been in place for a remarkable 720 days.
Source: TradingView
The Relative Strength Index (RSI) is on the rise and currently positioned above the neutral level of 50, signaling a bullish sentiment.
Expert analysis
Traders and analysts in the cryptocurrency community, particularly those on Platform X, are generally optimistic about the prospects of this coin.
For instance, Buy Dip Crypto is of the opinion that the price is likely to experience a parabolic surge only once the long-term resistance line is breached.
Weekly chart MATIC/USDT. Source: X
Masha, who has a bullish outlook for fundamental reasons, is particularly impressed by the steadfast commitment of stakers, evident in the continuously growing total amount of staked MATIC despite the decline in its price. In her own words:
“Since the first quarter, both the token price and network staking rates have exhibited a positive trend, indicating a thriving ecosystem where both market value and participation levels are expanding. However, there has been a shift in the third quarter, with the token price unexpectedly experiencing a fall, which has paradoxically spurred the growth of staking. This reflects the unwavering trust of community members, thereby showcasing an optimistic outlook for the staking ecosystem in the face of market challenges.”
MATIC forecast: potential rebound or bearish breakout
Despite the bullish inclination observed on the weekly chart, a bearish outlook is still evident on the daily timeframe.
The price action demonstrates that MATIC has retraced to the $0.85 horizontal region following its apparent breakthrough. Thus far, there have been two deviations above this level.
Furthermore, recent highs coincide with bearish divergence in the daily RSI, a signal often indicative of impending bearish trend reversals.
Should MATIC close below $0.85, a decline of 13% towards the $0.74 horizontal support area may be expected.
Source: TradingView
Conversely, a rebound above the $0.85 area could potentially propel MATIC by 45% towards the next resistance level at $1.25.
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