See More

Is Polygon (MATIC) Price on Road to Recovery After 40% Bounce?

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

In Brief

  • MATIC has bounced at an important support area but the long-term readings are bearish due to a breakdown from a long-term pattern.
  • The wave count is decisively bullish and projects that the MATIC price will soon drop to a new yearly low.
  • Despite this bearish price prediction, moving above the $0.94 low will mean that the trend is still bullish and the bounce will continue.
  • promo

At the start of April, the price of Polygon (MATIC) experienced a breakdown from a long-term pattern, and its rate of decline intensified in the past week.

The wave count analysis suggests that the upward movement is likely to persist. Although there is a possibility of a temporary rebound in the price, probably, the downward movement is not yet complete.

Polygon Price Bounces but Trend Still Bearish

The technical analysis for MATIC on a weekly basis gives a strongly pessimistic outlook. There are multiple factors contributing to this viewpoint.

To begin with, in April 2023, the price broke below a long-term ascending parallel channel. This signifies the conclusion of the previous upward movement.

Additionally, since these channels typically contain corrective patterns, the breakdown suggests that the prior increase was corrective in nature. Consequently, the prevailing trend is likely to be bearish.

Currently, the MATIC price is trading above the $0.53 horizontal support level, where it bounced at the beginning of June (green icon).

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

Furthermore, the weekly Relative Strength Index (RSI), which market traders utilize as a momentum indicator to detect overbought or oversold conditions and determine whether to accumulate or sell an asset, indicate a bearish reading.

The RSI is below 50 (red icon) and declining, indicating a downward trend.

MATIC Price Prediction: Wave Count Gives Bearish Outlook

The short-term daily time frame analysis also presents a bearish outlook due to the wave count.

Technical analysts utilize the Elliott Wave theory to identify recurring patterns in long-term prices and investor psychology, aiding them in determining the trend’s direction.

Based on the most probable count, the current price action for MATIC suggests it is in the fifth and final wave of a decline (black). If this count is accurate, the price is expected to fall to a low of $0.39.

The target is given by the 1.61 external Fib retracement of wave four.

Moreover, the price action supports the bearish wave count. The MATIC price broke down from an ascending parallel channel, a sign that suggests the corrective wave four is done.

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

Reclaiming the channel’s support line would suggest that the bounce could continue despite the bearish MATIC price prediction.

However, the bearish prediction will only be invalidated with a move above the bottom of wave one (red line). In that case, an increase to $1.30 will be likely.

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

Top crypto projects in the US | April 2024
Harambe AI Harambe AI Explore →
Coinbase Coinbase Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

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