The price of Polygon (MATIC) has shown significant resilience and signs of a potential trend reversal since September 11. This article delves into the recent developments and key factors influencing MATIC’s price action.
Breaking Free from Resistance
On September 19, MATIC’s price made a notable move by breaking out from a descending resistance trendline, marking a significant turning point in its recent trajectory. Following this breakout, the price managed to reclaim the $0.60 horizontal resistance area, suggesting a bullish shift in sentiment.
The question on everyone’s mind now is whether this marks the beginning of a trend reversal for MATIC.
Analyzing MATIC’s performance on a daily timeframe, it’s evident that the token has been on an upward trajectory since September 11. Although it initially faced challenges in surpassing the $0.60 resistance on October 4, a higher low was formed on October 19, followed by a breakout just three days later.
Adding to the positive sentiment, Polygon recently announced the release of a new version of the Miden Virtual Machine, expected to enhance performance by a substantial 30%. Additionally, the initiation of the 10-day timelock for the Inca Berry, the latest Mainnet upgrade, was confirmed by the Polygon team.
Further boosting MATIC’s prospects, Binance, one of the leading cryptocurrency exchanges, revealed its plans to launch a new trading service using the USDC stablecoin on the native Polygon blockchain.
Zooming out to a weekly timeframe, the technical analysis paints a bullish picture, providing support for the ongoing breakout from the resistance trendline. Despite MATIC’s brief dip below the long-term $0.60 horizontal area in September (attributed to a deviation), the price swiftly reclaimed this critical level.
Notably, MATIC also formed a bullish engulfing candlestick in the past week. This candlestick pattern indicates a reversal in sentiment, where the entire decrease from the previous period is nullified in the following one, reinforcing the significance of the breakout and reclamation of the $0.60 horizontal area.
Should MATIC’s price maintain its upward momentum, the next key resistance to challenge will be at $0.85, representing a substantial 40% increase from the current level. Notably, Crypto_Scient, a respected cryptocurrency trader, shares this bullish sentiment and believes MATIC is poised to reach this resistance level.
However, it’s essential to exercise caution. A weekly close below the $0.60 horizontal area could invalidate the breakout, potentially leading to a 40% price decline back to the June lows at $0.35.
In conclusion, Polygon (MATIC) is showing promising signs of a trend reversal, supported by technical analysis and recent positive developments. The cryptocurrency community will closely monitor its performance in the coming weeks to determine whether this bullish momentum can be sustained.
This article does not constitute financial advice and should not be taken as such. Cryptocurrency investments are subject to high volatility, and it is recommended to conduct thorough research and consult with a financial advisor before making investment decisions.