Bitcoin btc
$ usd

Polygon (MATIC) Price Prediction: Reversal or Further Decline?

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • The Polygon (MATIC) has fallen since May and recently lost a long-term support level.
  • The RSI and price action in different time frames support the continuing of the decrease.
  • A breakout from the short-term channel will mean that the short-term trend is bullish.
  • promo

The Polygon (MATIC) price has decreased considerably since the end of February. It invalidated a long-term structure during its fall.

The readings from both long- and short-term timeframes are still bearish. As a result, the downward trend is expected to continue without a bounce.

Polygon Price Breaks Down From Long-Term Structure

The technical analysis from the weekly time frame suggests that the Polygon trend is bearish. There are two main reasons for this.

The most important one is the breakdown from an ascending parallel channel in April 2023. Before the breakdown, the channel had been in place since June 2022.

So, its breakdown is a decisively bearish sign, suggesting that the previous increase is finished. Often, such breakdowns mean that a new trend in the other direction has now begun.

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

The weekly Relative Strength Index (RSI) is also bearish. By using the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls have an advantage, but if the reading is below 50, the opposite is true.

The RSI fell below 50 in April (red icon), at the same time the price broke down. This legitimized the decrease, further suggesting that the long-term trend is bearish.

MATIC Price Prediction: Breakdown Can Accelerate Decrease

The technical analysis from the short-term six-hour time frame gives a bearish MATIC price prediction. It suggests that the long-term decrease will continue without a bounce. The first reason for this comes from the wave count.

The Elliott Wave theory, employed by technical analysts, involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.

The count suggests that MATIC is currently in wave four of this five-wave decrease. Therefore, another drop will complete this portion of the correction.

The second reason comes from the presence of an ascending parallel channel. As outlined in the weekly time frame, such channels usually lead to breakdowns.

Moreover, the price trades in the lower portion of the channel, supporting the possibility of a breakdown.

If one occurs, the most likely target for the bottom will be near $0.77. The target is found by the length of wave one (white) and the 1.61 external Fib retracement of wave four (black). This will also align with the long-term $0.75 horizontal support area.

MATIC Price Prediction
MATIC/USDT Six-Hour Chart. Source: TradingView

Despite the bearish MATIC price prediction, a movement above the short-term channel’s resistance line will mean that at least the short-term trend is bullish.

In that case, the price can increase toward the closest resistance at $1.05. However, this will not invalidate the bearish readings from the weekly time frame.

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


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.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...