Polygon (MATIC) Price Forecast After Surpassing $1
Date: 2024-02-27 Author: Dima Zakharov Categories: BLOCKCHAIN
Polygon Breaks Long-Term Resistance
Polygon has broken a significant 780-day resistance trendline, although it is currently trading within a horizontal resistance zone. MATIC nearly reached its December 2023 peak at $1.10. Let's delve into whether the price can absorb it and accelerate its growth.
Weekly Perspective
The weekly timeframe reveals that two weeks ago, MATIC's price breached a 780-day descending resistance trendline. This trendline had been in place since reaching its all-time high. Today, the token reached a peak of $1.08, just shy of the December 2023 highs. However, despite breaking the long-term trend, Polygon remains within a long-term horizontal resistance area.
RSI Support
The weekly Relative Strength Index (RSI) backs this breakthrough. The indicator bounced off the 50 level (green circle), indicating a bullish trend.
MATIC Forecast: Is $1.50 the Next Stop?
The daily chart also signals bullish trends. Price action shows that on February 21st, MATIC broke the $0.95 horizontal area, confirming it as support (green checkmark). Elliott Wave analysis confirms growth potential, suggesting MATIC is in the third wave of a five-wave upward movement. Assuming the first and third waves are equal, this could take us to a maximum of $1.54, almost 50% higher than the current price. However, the daily RSI demonstrates weakness in the form of bearish divergence.
Potential Drop and Continued Growth
Despite the relatively optimistic forecast, MATIC could drop by 10% to the $0.95 horizontal support area if bearish divergence is confirmed. Nonetheless, this wouldn't negate the bullish scenario but rather signify a temporary decline before resuming the upward movement.
