Polygon (MATIC) price has been declining since February and has reached the support line of a long term pattern, which has contained the price action since June 2022.
Since this is a long-term pattern, the price must not break down for the long-term bullish movement to remain intact. However, with the bearish indicator readings in place, will MATIC be able to rebound?
Polygon price stumbles towards support
Technical analysis from the long-term weekly time frame gives a bearish view of MATIC, the native token of Polygon Network. There are several reasons for this. First, the price is trading within an upward parallel channel.
This is a type of pattern where the price bounces between parallel resistance and support lines. It is considered a bearish pattern, which means that an eventual collapse from it will be the most likely forecast. The fact is that the price is trading at the bottom of the channel.
Second, the weekly relative strength index (RSI) is giving a bearish reading. Using the RSI indicator as a momentum indicator, traders can determine whether the market is overbought or oversold and decide whether to accumulate 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 MATIC, the RSI broke lower from the trend line (green line) and fell below 50. Both bearish signs support the continuation of the decline.
If MATIC price breaks out from the channel, the next closest support area would be $0.43. On the other hand, if it rebounds at the channel support line, then the most likely scenario is a rally towards the center line at $1.40.
Polygon (MATIC) Price Prediction: Is Collapse Imminent?
The overview of the daily time frame is aligned with the weekly time frame. It appears that MATIC price has collapsed from a short-term ascending support line, which has been in place since the beginning of the year. When a line measures an increase slope for a certain period of time, a breakdown from it means that the previous trend is now over. In the case of MATIC, this trend was upward.
Additionally, the price dropped below the $1.04 horizontal support area, further legitimizing the crash. The area has intermittently acted as resistance and support. As a result, a breakdown from it is a strong bearish signal.
Finally, the daily RSI is below 50 (red icon) and decreasing. Hence, the signals from the weekly and daily timeframes support a continued decline towards $0.43.
Although a bearish MATIC price is expected, a recovery of $1.04 area would mean that at least a short-term increase is imminent. In this case, the MATIC token could move to $1.20.
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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.