Altcoin, which has attracted intense interest from investors, especially due to its performance in the last year, misses its old days. In the past year, it benefited relatively less in bear markets due to major updates and partnerships. However, due to the extreme selling pressure as of March, it reached one of its historical lows, which peaked on June 10. So what’s next?
Polygon (MATIC) price broke out of the 140-day resistance line on July 9th, but it failed to surpass a critical horizontal resistance level. Considering the current outlook of Bitcoin and the upcoming Fed meeting, the job of MATIC Coin bulls becomes a bit more difficult. While the daily timeframe readings are bullish, bearish signals are becoming more apparent in the shorter-term six-hour timeframe.
The analysis of MATIC’s daily timeframe suggests a positive outlook as the price broke an declining resistance line that had been in place for 140 days. This breakout from a long-term level indicates the end of the previous movement and paves the way for a trend in the opposite direction. Despite the breakout, MATIC has not yet experienced a significant upward movement. Instead, it was rejected by a horizontal range of $0.85 and is currently trading near the pre-breakout level.
The popular cryptocurrency gives hope to its investors with the support of the weekly RSI. Furthermore, it is normal for the weekly chart to be promising as the price broke out of the resistance line (on a daily basis) and the RSI crossed the neutral zone. Doubts on the short-term time chart should also not be ignored. MATIC price has been trading within a rising parallel channel for a long time. Movements within a channel are generally considered corrective. Although the price broke out of this channel on July 13, falling back into it dismissed the narrative that the decline had ended.
Furthermore, the six-hour RSI is at the 50 line and cannot confirm the direction of the trend. Therefore, whether the MATIC price will break out of the channel or move downwards will likely confirm the direction of the future trend. In the event of a breakout, the price will likely surpass the previously mentioned $0.85 resistance. The next target will be $1. In a negative scenario, $0.5 could be tested.