Markets

Polygon (matic) price in the decisive test for the bulls

Polygon (MATIC) price is in the process of collapsing from a long-term structure, putting the entire year-to-date increase at risk.

Besides the long-term breakdown, the daily time frame is also providing bearish signals. As a result, an almost immediate bullish reversal would be required to cancel the downtrend.

Polygon price risks losing the bullish structure

According to the technical analysis on the long-term weekly time frame, there is a bearish outlook for MATIC, the native token of the Polygon Network. There are multiple reasons for this.

First, the price of the MATIC token is trading within an upward parallel channel, a pattern that usually culminates in a breakdown. As a result, it is considered a bearish pattern.

The fact that the price is trading at the bottom of the channel supports this view.

MATIC/USDT Weekly Chart. source: TradingView

Second, the weekly relative strength index (RSI) is giving a bearish reading. Traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold and to determine whether to buy or sell an asset.

If the RSI reading is above 50 and the trend is up, the bulls have the advantage, but if the reading is below 50, the opposite is true.

In the case of Polygon price, the RSI broke out from the trend line and dropped below 50, indicating a downtrend. The fact that a decrease in the RSI coincides with a decrease in the price increases the chance of a breakdown.

The nearest support area is at $0.76, while the nearest resistance is at the center line of the channel at $1.40.

Matic Price Prediction: Does the price have any strength left?

The daily time frame price analysis is in line with the weekly analysis. Although polygon price bounced at the $0.95 horizontal support area, it is still following a short-term bearish resistance line.

In combination with the support area, this created a descending triangle, which is considered a bearish pattern.

As a result, a breakdown from it is the most likely forecast. If this happens, it is likely to cause a downward move towards $0.76.

Polygon price prediction (MATIC)
MATIC/USDT daily chart. source: TradingView

Although bearish MATIC price is expected, moving above the resistance line and regaining the support line of the previous channel will mean that the trend is up. In this case, the price could move towards the middle line of the channel at $1.40.

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Disclaimer

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 providing 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.

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