The Polygon (MATIC) price has fallen since November 14, creating a lower high on December 9.
MATIC has now returned to a critical horizontal support area. Will it break down from it, or will the area initiate a bounce?
Polygon Struggles to Sustain Increase
The daily time frame technical analysis shows that MATIC price had increased since October, when it broke out from a descending resistance trend line. The upward movement led to a high of $0.98 on November 14.
After the breakout, MATIC cleared an important horizontal resistance level, which had been in place since June. Despite the breakout, it fell below it afterward, creating a lower high in December (red icons).
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
While the RSI is above 50, it is falling. Also, it has generated a bearish divergence (green line), a sign of waning momentum.
What Are Analysts Saying?
Cryptocurrency traders and analysts on X are mostly bullish for the future MATIC price trend.
Dark Green tweeted a long-term symmetrical triangle. He suggested that the movement will be similar to that of 2021, when MATIC accelerated its increase after breaking out from a similar pattern.
Crypto Dave is also bullish but has short-term reasons for his analysis. He tweeted:
2. I’m looking for MATIC to break $.96 level and get to $1 before the year ends. 3. Remains bullish as long as we’re above $.72 level.
Finally, it is worth mentioning that the Polygon team announced that its engineers have completed a test version of the Polygon Miden node. The node will Expose RPC endings, verify user-generated proofs, produce blocks, and store & update the state.
MATIC Price Prediction: Will $0.85 Area Hold?
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The most likely count suggests that the MATIC price completed a five-wave upward movement starting in September. Now, it is in the C wave of an A-B-C corrective structure. The bearish divergence in the daily RSI also supports this decrease.
If the MATIC price fall continues, the most likely target for the bottom of the C wave is at the 0.618 Fib retracement support level at $0.68. This would give waves A:C a 1:1 ratio and would amount to a drop of 20%.
Despite this bearish MATIC price prediction, moving above the wave B high of $0.95 can lead to a 35% increase to the next resistance at $1.15.
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