Polygon (MATIC) Price Forecast: Impact of Long-Term Resistance Line on Future Trend
Date: 2023-09-22 Author: Dima Zakharov Categories: CRYPTO PAYMENTS, IN WORLD
Analyzing the current situation in the cryptocurrency market: Polygon (MATIC) and its long-term resistance line
Cryptocurrencies remain some of the most dynamic and intriguing assets in the financial markets today. One such cryptocurrency is Polygon (MATIC). In this article, we will examine the current situation with MATIC, specifically how the long-term resistance line is affecting its future trend.
On the daily chart, it is evident that the price of MATIC reached a high of $1.57 at the beginning of the year but then started to decline along a descending resistance line. This line has become a significant barrier to price growth, and on August 29, it confirmed its role when MATIC failed to break the $0.60 support level, turning it into resistance.
Such price behavior suggests the presence of a bearish trend. However, it is important to note that MATIC is currently attempting a bullish breakout. If the price can breach this long-term resistance line, there is a good chance of reaching the $0.85 level, representing a substantial 60% increase. But there is also the flip side: if the price fails to overcome this line and rebounds from it, we may expect a decline to the $0.35 support level, resulting in a 35% loss.
Analysis of technical indicators: RSI and the growth prospects of Polygon (MATIC)
To gain a better understanding of which direction MATIC may move in, let's turn to technical indicators. On the daily Relative Strength Index (RSI) chart, it can be seen that the index is below the 50 mark but is rising. This is interesting because the RSI indicator is often used to identify overbought or oversold conditions of an asset. When it is above 70, it may indicate overbought conditions and a potential corrective move downward. However, with RSI currently below 50 and on the rise, it may be a sign of a shift towards a bullish trend.
Furthermore, we observe a significant bullish divergence on the RSI, indicating that the price decrease is accompanied by an increase in momentum. This often precedes a trend reversal towards an upward movement. In the case of MATIC, this could imply a potential breakthrough of the long-term resistance line.
