Polygon price fell by 25%: will MATIC update the annual minimum
Date: 2023-08-02 Author: Karina Ziganova Categories: BLOCKCHAIN
The price of Polygon (MATIC) failed to break above the important horizontal resistance area and then broke through a short-term corrective pattern.
This can be regarded as a key sign of a change in trend to bearish. The continuation of the downward movement is likely to lead to a new annual minimum.
Polygon falls after a rebound from an important resistance level
The technical analysis of the weekly timeframe gives a disappointing forecast, primarily due to the recent rebound from the $0.80 horizontal resistance zone. This area has acted as a support level since July 2022 but has become strong resistance in the last two weeks.
The formation of a long upper wick (marked with a red icon on the chart) indicates increased pressure from sellers. This suggests that, despite the attempts of the bulls to push the price up, the bears still took control of the situation.
The drop came around the same time that digital banking giant Revolut announced it was delisting MATIC.
The weekly relative strength index (RSI) supports the possibility of a decline: its value fell below 50, which also indicates the growing strength of sellers.
MATIC Price Prediction: Where to move after a breakout?
The Polygon daily timeframe also gives a bearish outlook. The main reason for this is the breakdown of the ascending parallel channel that has existed since June 10th. This technical pattern is considered corrective, so its breakdown indicates the completion of the upward correction and the resumption of the downtrend.
The RSI, meanwhile, has fallen below the 50 level (red icon on the chart), which confirms the legitimacy of the break and indicates a bearish move.
If the decline continues, the immediate support will be at $0.60. This means another 12% decrease from current values. If the price of MATIC rises to the channel support line at $0.80, the trend will change to bullish. However, there are no signs yet that this will happen.
