Polygon (MATIC) at a Crossroads: Breaking the Descending Resistance Line May Trigger a 20% Rally

Since the beginning of September, the price of the cryptocurrency Polygon (MATIC) has demonstrated a slight increase. At the moment, it faces a crucial decision - whether to overcome the long-term descending resistance line, which could significantly impact the future trend direction. This is a key point of interest for many investors.

On the daily MATIC/USDT chart, you can observe a descending trendline of resistance that emerged since late February, following the local peak at the $1.57 level. Since then, the MATIC price dropped below the $0.60 support level, and on August 29, it confirmed this level as resistance. One significant point to note is the bounce from this line, which coincided with the recent touch of the descending resistance line, confirming its importance.

However, at present, MATIC is attempting to overcome this critical zone. A successful breakthrough of this resistance could complete the current correction and initiate a new uptrend. Otherwise, the price will continue to move within the descending correction.

The analysis of MATIC's technical indicators also sheds light on the current situation. Despite bearish signals in price dynamics, the Relative Strength Index (RSI) on the daily chart shows signs of a potential reversal towards a bullish trend.

RSI helps traders assess the strength of momentum and the direction of the trend. RSI rising above 50 during a bullish trend is considered a positive signal, while dropping below this mark is viewed as a bearish signal. Currently, RSI is below 50 but rising. More importantly, the indicator is forming a significant bullish divergence relative to the price, which may indicate a potential reversal.

However, the six-hour MATIC/USDT chart does not provide a clear picture, and there are signs of growth here. The price is moving within a descending parallel channel, which is typically considered a correction pattern and may suggest a likelihood of a breakout in the direction of the main trend. Additionally, the cryptocurrency is trading above the midline of this channel, which is also a sign of a bullish trend.

However, it's worth noting that the RSI on the 6-hour chart does not confirm the potential reversal, which could add to the uncertainty.

The fate of MATIC currently largely depends on whether the price can overcome the descending trendline or not. In the case of a successful breakout, a rise to the $0.65 area, roughly a 20% increase, is possible. Otherwise, we can expect a 10% drop to the channel's support line at around $0.46.