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Polygon (MATIC) price continues to trade above a long-term horizontal support area. This zone has served as both support and resistance over approximately a three-year period. Although MATIC has broken through a short-term descending resistance trend line, the lack of a notable upward movement has caused unease among investors.
Polygon Still Above Support
Analysis based on the weekly time frame shows that the MATIC price is currently trading above the horizontal support area ($0.7879) for over 90 days. This area has intermittently served as both support and resistance to investors since April 2021.
MATIC had fallen below this region about two weeks ago but reclaimed it after forming a long lower wick (green symbol). Despite the price jump, MATIC failed to display a significant upward movement and returned to the horizontal support area.
On the other hand, weekly indicators show the Relative Strength Index (RSI) trending upwards. The closely watched RSI indicator jumped at 50 (green circle), thus confirming the price movement with its rebound from the horizontal support area.
What Are Analysts Saying?
Cryptocurrency traders and analysts at ‘X’ are expressing a positive outlook for the future trend of MATIC. A crypto analyst named ColdBloodShill points out that MATIC is trading within one of the best-looking high timeframe charts due to its rise above the support region and not falling below lower levels.
Technical analysis based on the daily timeframe suggested that a bullish structure could form due to price action. MATIC initiated a rise from the horizontal support area at $0.72 on January 23 and broke the descending resistance trend line six days later.
Although MATIC has experienced some decline since that day, it is still trading near the breakout level. Consequently, the price may undergo a retracement to confirm the trend line as support.
As of writing, MATIC is up by 0.5% at $0.7969. The trading volume has also increased by 10% over 24 hours, amounting to $236 million. Meanwhile, the overall volume has risen by 0.5%, reaching a level of $7.6 billion.
