The Polygon (MATIC) price is trading above the long-term $0.80 horizontal support area. However, a lack of conviction from the price action and RSI means the future direction of movement is unclear.
The MATIC price fell below a descending resistance line since reaching an all-time high price of $2.92 in Dec. 2021. The decrease led to a low of $0.31 in June 2022.
Afterward, the Polygon price began an upward movement and broke out from the resistance line in July. Doing so also reclaimed the $0.80 horizontal support area. This is a crucial area since, except for the May to July deviation (red circle), it has been in place since May 2021.
The Polygon price validated the line/area as support in Aug. (green icon) and has been moving upward since. It returned to the $0.80 area once more in Nov. The weekly RSI is undecided, since it is trading right at 50.
So, a breakdown from the $0.80 support area would have numerous bearish implications, since it would also cause an RSI breakdown below 50.
Polygon Price Prediction: Bullish and Bearish Counts in Play
Two potential counts are still valid.
The bullish count suggests that the Polygon price began a bullish reversal on June 18. Afterward, it completed an irregular flat correction between Aug. 14 and Nov. 9 (highlighted).
If so, the MATIC token price will continue increasing toward new highs. The count is still valid despite a slight decrease over the past 24 hours. However, a drop below $0.76 would invalidate it (red line).
The bearish count suggests that MATIC has completed an A-B-C corrective structure. In it, waves A:C had a slightly less than 1:1 ratio. If correct, it would mean the price will fall to a new yearly low. The count would be invalidated with an increase above the wave C high at $1.30 (red line).
Similar to the weekly time frame, the RSI is at the 50 line, indicating an undetermined trend. As a result, the direction of the future movement still needs to be determined.
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