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Polygon (MATIC) Faces Crucial Test at 700-Day Trend Line: Will it Breakout or Retreat?

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

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