See More

Breaking Polygon (MATIC) Moves Above $1 for the First Time in 250 Days – Can It Reach $2?

3 mins
Updated by Valdrin Tahiri
Join our Trading Community on Telegram

In Brief

  • Polygon's (MATIC) price has been on an upward trend since October. The price rally accelerated further this week.
  • The weekly and daily time frame Relative Strength Index (RSI) and price action both support the bullish MATIC trend.
  • Despite the bullish MATIC price prediction, a weekly close below the long-term trend line will invalidate the breakout.
  • promo

The Polygon (MATIC) price moved above $1 today. It is breaking out from a 730-day descending resistance trend line, which has been in place since the all-time high.

Despite the breakout, MATIC is still below its yearly high of $1.57. Can it reach a new one before the end of the year?

Polygon Finally Breaks Out

The MATIC price had fallen under a long-term descending resistance trend line since the all-time high of $2.90 in December 2021. The decrease led to a low of $0.32 in June.

After beginning an upward movement, MATIC attempted to break out in February 2023 (red icon) but was unsuccessful. Two more unsuccessful breakout attempts followed in November and December before the price finally broke out this week.

Today’s high of $1.07 is the highest since April. It is worth mentioning that MATIC has not reached a weekly close above the resistance trend line yet.

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

Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.

The weekly RSI is increasing and above 50, both signs of a bullish trend.

What Do Analysts Think? 

Cryptocurrency traders and analysts on X have a bullish outlook on the future MATIC price trend.

Pentosh1 suggests the upward movement will continue since the price has bounced at a long-term support area. He tweeted:

You can’t not like this setup. Have no idea how long it will take to play out, just that it likely will probabilistically speaking Historical support confluence, bull flagging for more. Yet to run but starting to find it’s flippers

Polygon (MATIC) Price Movement
MATIC/USDT 3-Day Chart. Source: X

The Cryptomist also gives a bullish outlook on the future trend. She tweeted a potential triangle breakout that leads to a price of $1.30.

Finally, Open4Profit tweeted a breakout from a bullish cup and handle pattern, suggesting that this will lead to new highs.

MATIC Price Prediction: Will End-of-Year Rally Continue?

The technical analysis from the daily time frame gives a bullish outlook because of the wave count and RSI readings.

Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.

The most likely wave count suggests that MATIC is in the fifth and final wave of an upward movement (black). The first target for the top of this wave if at $1.20, 13% above the current price. The target is found by giving wave five 0.618 times the length of waves one and three combined.

The second target is $1.50, 40% above the current price. It is found by giving wave five the entire length of waves one and three combined.

This count is supported by the daily RSI, which has generated a hidden bullish divergence (green), a sign of trend continuation.

Polygon (MATIC) Price Prediction
MATIC/USDT Daily Chart. Source: TradingView

Despite this bullish MATIC price prediction, closing below the $0.95 horizontal support area will mean the top is in. Then, MATIC can fall 30% to the closest support at $0.75.

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

Is Polygon MATIC Just Starting to Spread its Wings? – YouTube

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

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.

Valdrin-Tahiri.jpg
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)
READ FULL BIO
Sponsored
Sponsored