Polygon’s (MATIC) price has experienced a decline since its peak in December 2021, consistently falling below a long-term resistance trend line. Additionally, the cryptocurrency is also following a short-term resistance trend line, indicating a bearish sentiment.
MATIC’s Resistance Line
Technical analysis reveals that MATIC’s price has been on a downward trend since its all-time high, hitting a low in June 2022. Despite a price increase, it remains under the influence of the declining resistance trend line. Recent attempts to break through this resistance have been unsuccessful, and the Relative Strength Index (RSI) suggests a continuing downtrend.
The RSI, a key momentum indicator, is currently above 50 but shows signs of a potential trend reversal. This uncertainty is mirrored in both weekly and daily timeframes, with the RSI and price movements hinting at a persistent bearish trend for MATIC.
Recent price action has seen MATIC rejected by the trend line, forming a bearish candlestick pattern. This rejection aligns with an RSI downturn from the midpoint, signaling potential weakness in buying momentum.
Despite the bearish indicators, analysts like Crypto Rover believe MATIC’s price may eventually ascend. Currently trading below the resistance line but above a critical support level, a break below could lead to a further 20% drop in price.