MATIC is the native token used in the Polygon Network, a solution for scaling smart contracts at the Layer 2 level. Technical analysis of MATIC price action on a daily basis shows that on March 29th, the price broke through the resistance line that previously caused many rejections. This break confirmed that the minor support area at $1.08 has been recovered and the previous drop below that area (highlighted in red) is now invalid.
However, even with the breakout, the price was unable to sustain the upward trend and did not reach the 0.5 Fibonacci retracement resistance level at $1.25. This failure makes it possible for the price to drop again.
However, MATIC created a higher low on April 12 (green symbol) and has been increasing since then.
If the price breaks below the $1.08 support area, it could trigger a significant drop towards the next nearest support at $0.95. However, if there is a rebound, the MATIC token price could reach the $1.25 resistance.
The daily RSI is currently above the 50 level and is increasing, which indicates the possibility of an upward movement.
Will the price of the polygon (MATIC) collapse?
Technical analysis from the short-term six-hour time frame aligns better with the possibility of a breakdown. This is because the price is trading inside an ascending parallel channel, which is considered a bearish pattern. The channel resistance line also coincides with the $1.19 minor resistance area.
Despite the rejection from the area (red circle), MATIC price is still trading at the top of the channel. This allows for the possibility of it eventually erupting.
Whether the price breaks or falls to the channel support line is likely to determine the future direction of the trend. While a breakout could lead to a rally of at least $1.25 and possibly $1.50, a breakdown is likely to lead to a drop to $0.94.
In conclusion, the polygon price prediction is still undetermined. Whether the price breaks out of the current pattern or is rejected can determine the future move. A breakout could lead to highs at $1.25 or $1.50, while a breakdown could trigger a drop to $0.94.
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In line with 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 and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.