Polygon (MATIC) price failed to break the long-term declining trend line last week and formed a lower high in the process. Nonetheless, it continues to trade above the horizontal support zone. So, is MATIC gearing up for a breakout, or is a downward path imminent?
A look at the weekly technical analysis of MATIC shows that it has been trading below a decreasing resistance trend line since reaching its All-Time High (ATH) in December 2021. This decline led to a drop to $0.32 in June 2022. MATIC then entered a rally and has so far failed to break the resistance trend line three times.
The chart also shows an increase in the Relative Strength Index (RSI), and an RSI above 50 could be considered a bullish indicator for MATIC.
Cryptocurrency traders and analysts seem to have a predominantly positive outlook on future price movements, as seen in posts on platform X. It is speculated that a parabolic increase could only begin with the breaking of the long-term resistance trend line.
The daily time frame analysis still shows a downward outlook, and the price movement with the RSI indicator is cited as the reason for this. After MATIC price returned to the $0.85 horizontal area, there were only two deviations above this level. If the MATIC price closes below $0.85, a 13% drop to the $0.74 horizontal support area could be possible. Conversely, a return to the $0.85 area could lead to a 45% increase to the next resistance at $1.25.