Polygon (MATIC) recently approached the $1 mark but faced rejection on November 14, primarily due to a long-term descending resistance trend line that has been in place for nearly 700 days. As MATIC continues to trade within this critical resistance, the question arises: Will the price finally break above or retreat?
Key Points:
- Long-Term Descending Resistance: MATIC encountered rejection from a long-term descending resistance trend line that has persisted for almost 700 days. The rejection occurred after the price surged to a high of $0.98 but failed to breach the resistance.
- Weekly Technical Analysis: Analyzing the weekly timeframe, MATIC has shown an upward trajectory since breaking out from a descending resistance trend line in September. The momentum accelerated in October, leading to the recent high. Despite a bearish candlestick last week, MATIC had previously formed four bullish candlesticks.
- Horizontal Resistance and RSI: MATIC’s upward movement took it above the $0.85 horizontal resistance area. However, the price did not reach $1 and has slightly declined, currently trading within this resistance zone. The Relative Strength Index (RSI) on the weekly timeframe remains bullish, suggesting that bulls still have an advantage.
- Analysts’ Sentiments: Cryptocurrency analysts on X express mostly bullish sentiments for MATIC’s future price trend. Some anticipate a long-term breakout from the current pattern, potentially leading to a new all-time high. Short-term analyses by other experts reveal bullish continuation patterns, aligning with positive expectations.
- Price Prediction and Potential Scenarios: If MATIC successfully breaks out from the long-term trendline, there is a potential 70% increase to the next horizontal resistance at $1.50. However, failure to break out could result in a 10% drop to the closest support at $0.75.
Conclusion:
Polygon (MATIC) stands at a crucial juncture as it contends with a 700-day descending resistance trend line. Analysts remain cautiously optimistic, citing potential breakout scenarios, but the altcoin’s ability to breach this long-term resistance will be a determining factor in its price trajectory. Traders are advised to monitor the evolving market conditions and conduct thorough research before making financial decisions.
