Polygon (MATIC) price has broken out from a descending resistance trend line that has been in place for over 780 days. Is this the start of a new uptrend cycle, or will MATIC fail to sustain its rise?
Breaking the Resistance Line in MATIC
Weekly time frame technical analysis of the cryptocurrency unit shows that the MATIC price exited the 780-day descending resistance trend line last week. The weekly close saw the highest level since April 2023. Even though MATIC has shown a slight decline since the breakout, it retested the resistance trend line as support this week.
In the cryptocurrency space, this is a common movement following similar breakouts. Despite breaking from such a long-term cross resistance, the MATIC price has not yet departed from the main horizontal resistance area, which has been present as both support and resistance since July 2021. Daily time frame technical analysis, including price action, wave counting, and the Relative Strength Index (RSI) data, may support the findings of a weekly uptrend.
On-Chain Data for MATIC
The price action of the cryptocurrency may show that MATIC has broken out from the $0.95 range top and confirmed it as support. This movement, combined with a bullish divergence in the daily RSI, often leads to the continuation of the trend. Wave counting anticipates a continued rise well above $1. Analysts use the Elliott Wave theory to determine the direction of a trend, which involves studying recurring long-term price patterns and investor psychology.
The most likely count indicates that the MATIC price is in the third wave of a five-wave upward movement. Giving the third wave the same length as the first wave could lead to a high of $1.55, over 60% above the current price. Despite the upward price forecast for MATIC, a daily close below $0.95 could mean that the local peak is still inside. Then, MATIC could retreat by 25%, falling to the nearest support at $0.74.
