Polygon (MATIC) has been increasing over the past three days. While there is strong resistance at $2.26, a breakout above it would pave the way for a new all-time high price.
MATIC has been falling since Dec 8, when it reached a high of $2.57. This was only slightly below the all-time high price of $2.70. The ensuing rejection served to validate the $2.43 area as resistance.
However, despite the fall, MATIC is still trading above an ascending support line that has been in place since late July. The ensuing bounce took it to $2.16, only 25% below the current all-time high.
In addition to this, technical indicators are relatively bullish.
The MACD, which is created by short and long-term moving averages (MA) is positive and moving upwards. This means that the short-term MA is moving faster than the long-term average.
The RSI, which is a momentum indicator, is increasing and above 50. This is also considered a sign of bullish trends.
If MATIC manages to break out from the $2.43 resistance area, the next resistance levels would be found at $3.25 and $3.96. These are the 1.27 and 1.61 external Fib retracement resistance levels, respectively. Whenever the price reaches a new all-time high, such external levels are often used to determine the next resistances.
Cryptocurrency trader @PostyXBT tweeted a MATIC chart, which shows the token increasing alongside an ascending support line. The support line aligns with that drawn in the image above.
Short-term movement
The six-hour chart shows that MATIC is facing a crucial resistance at $2.26, which is created by the 0.618 Fib retracement resistance level and is also a horizontal area.
The 0.618 Fib level is the one that most commonly rejects the price after a considerable bounce. Therefore, a breakout above it would likely lead to a new all-time high price.
The shorter-term MACD and RSI are both bullish, supporting the possibility that MATIC will break out. The former has just moved into positive while the latter has crossed above 50.
MATIC/BTC
The MATIC/BTC chart is also bullish.
On Oct 23, the token broke out from a descending resistance line in place since the May all-time high. It has been increasing since.
In addition to this, it reclaimed the 4000 satoshi area on Dec 3.
If the token continues to increase, the next resistance area would be at 5800 satoshis.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
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