Polygon has reached a long-term descending resistance line as well as the top of its short-term horizontal range. Will MATIC be able to attack the $1 mark?
Bullish Breakout ahead for Polygon?
The weekly timeframe shows that the price of MATIC has been declining since the beginning of 2022 below the long-term descending resistance line.
This brought the token to a low of $0.32 in June 2022, after which Polygon began an upward movement. So far, the resistance line has been tested for strength four times, the last time this happened this week. At the moment, the age of this line is almost 800 days.
Cryptocurrency trader CryptoFaibik believes MATIC’s price will rise by over 600% once it breaks through this long-term resistance.
$MATIC is on the Verge of Massive Triangle Upside Breakout..!!
I’m Extremely Bullish for the Midterm/Longterm so don’t miss the RIDE.#Crypto #MATIC #Polygon pic.twitter.com/Rkh1EvORwT
— Captain Faibik (@CryptoFaibik) February 16, 2024
The weekly relative strength index (RSI) is giving bullish signals. The indicator has bounced off the neutral level of 50 and is moving upward. These are all considered signs of an uptrend.
MATIC Price Prediction
The daily chart reflects a bullish picture due to a number of factors.
Price action shows that the cryptocurrency has been rising since January 23, when it bounced off its range low. It was able to reach the high of the range at $0.92, which is now at the time of writing.
The daily RSI also confirms this rise as it is above the neutral level of 50 and moving higher.
Finally, Elliott wave analysis also supports the breakout that is occurring. It is most likely that MATIC is now in the third wave of a five-wave upward movement. The third wave is usually the sharpest of the five waves, coinciding with a bullish breakout of the long-term falling resistance line.
The ratio of the first and third waves as 1:1 gives us a maximum of $1.54, which is 65% higher than the current price.
Despite this bullish outlook, failure of the price to break through the $0.93 resistance area could trigger a 20% fall to the nearest support level at $0.73.
About Polygon (MATIC)
Polygon, formerly known as Matic, is a blockchain solution for scalability and fast application performance. With the growing popularity of decentralized finance DeFi and NFTs, it happened that the largest blockchain networks became overloaded with transactions, and their fees were too high. This is completely unprofitable for retail traders. The technology promoted by Polygon aims to improve the speed and availability of applications running on Ethereum. This is a sidechain, that is, a chain that is based on the functions of Ethereum, but has its own scalability and security mechanisms.
