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Polygon price has reached the long-term descending resistance line that has been in place for about 800 days, and MATIC has also hit the top of its short-term horizontal range. Will MATIC be able to reach $1 following a resistance breakout? Technical analysis on the weekly timeframe shows that the MATIC price has been under the long-term descending resistance line since the beginning of 2022.
Weekly MATIC Chart Analysis
This decline led to a low of $0.32 in June 2022 before MATIC began an upward movement. The resistance trend line has been tested and confirmed four times, most recently this week. This situation has been ongoing for approximately 800 days. Cryptocurrency investor CryptoFaibik believes that the MATIC price could increase by more than 600% once it breaks out from this long-term resistance.
The Weekly Relative Strength Index (RSI) is giving a bullish signal. Investors continue to use the RSI level as an important indicator of momentum when assessing market conditions.
If the RSI value is above 50 and the trend is upward, it is advantageous for the bulls, but if the value is below 50, the opposite holds true. The indicator has risen to 50 (green icon) and is moving upward. Both of these developments are signs of a bullish trend.
Daily MATIC Chart Analysis
Daily chart analysis shows a bullish outlook due to price action, RSI readings, and wave count. The price movement indicates that MATIC has been increasing since its bounce from the low range on January 23, reaching a high of $0.93. The daily RSI level supports this increase as it is above 50 and moving upwards. Finally, the wave count supports the ongoing breakout. Elliott Wave theory involves analyzing recurring long-term price patterns and investor psychology to determine the direction of a trend.
The most likely assumption indicates that MATIC is in the third wave of a five-wave upward movement. The third wave is often the sharpest of the five and would align with a breakout from the long-term descending resistance trend line. Giving a 1:1 ratio to the first and third waves would lead to a target of $1.54 for the current MATIC price, which is over 65% higher.
Despite this bullish price prediction for MATIC, failure to break out from the resistance area of $0.93 could trigger a 20% drop to the nearest support at $0.73.
