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Polygon (MATIC) Price Stumbles Near $1 – Can It Overcome 700-Day Resistance?

3 mins
Updated by Ryan Boltman
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In Brief

  • The Polygon (MATIC) price created a bearish weekly candlestick last week. It had created four bullish ones in a row before it.
  • The weekly time frame Relative Strength Index (RSI) and price action are both bullish, suggesting that a breakout will ensue.
  • Despite the bullish Polygon (MATIC) price prediction, another rejection from the long-term resistance can lead to a drop.
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The Polygon (MATIC) price nearly reached a high of $1 last week but was rejected on November 14.

MATIC was rejected by a long-term descending resistance trend line in place for nearly 700 days. Will the price finally move above it?

MATIC Trades Inside Long-Term Resistance

The technical analysis from the weekly time frame shows that the MATIC price has increased since breaking out from a descending resistance trend line in September. The rate of increase accelerated in October, leading to a high of $0.98 last week.

While last week’s candlestick was bearish (red icon), MATIC had previously created four bullish candlesticks leading to the high.

Additionally, the upward movement took MATIC above the $0.85 horizontal resistance area. The MATIC price did not reach $1, has fallen slightly since, and now trades inside this area.

Polygon (MATIC) Price Movement
MATIC/USDT Weekly Chart. Source: TradingView

The Relative Strength Index (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.

Do Analysts Predict an Upward Movement?

Cryptocurrency analysts on X are mostly bullish for the future MATIC price trend.

ZAYKCharts believes a long-term breakout from the current long-term pattern is likely and could lead to a new all-time high price. He stated that:

Seems like the perfect moment for a Breakout to Happen

MATIC Long-Term Price
MATIC/USDT Weekly Chart. Source: X

NebraskanGooner and Nihilus are also bullish, though their analysis is made in the short-term rather than the long-term. NebraskanGooner outlined a short-term continuation pattern, which he has seen in numerous other altcoins.

Read More: Best Crypto Sign-Up Bonuses in 2023

MATIC Price Prediction – Can Price Clear 700-Day Trend Line?

A look at the MATIC price decrease since the all-time high shows that the altcoin has followed a descending resistance for nearly 700 days since the all-time high.

MATIC moved above this trend line last week (red icon) but failed to break out. Rather, it created a bearish candlestick and fell below it.

Nevertheless, as outlined previously, the weekly RSI is bullish, supporting the possibility of an increase. Furthermore, the MATIC price has moved above the long-term horizontal resistance area at $0.75, now likely to provide support.

If MATIC breaks out, it can increase by 70% to the next horizontal resistance at $1.50.

MATIC Price Prediction
MATIC/USDT Weekly Chart. Source: TradingView

Despite this bullish MATIC price prediction, failure to break out from the long-term trendline can cause a 10% drop to the closest support at $0.75.

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For BeInCrypto’s latest crypto market analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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