Can Polygon (MATIC) Price Finally Move Above 720-Day Resistance?

The Polygon ( MATIC ) price failed to break out from a long-term descending resistance trend line last week.

While the MATIC price created a lower high, it trades above its main horizontal support area. Will it bounce or break down?

MATIC Makes Another Breakout Attempt

The weekly timeframe technical analysis shows that the MATIC price has decreased under a descending resistance trend line since its all-time high in December 2021. The decrease led to a low of $0.32 in June 2022.

The MATIC price began an upward movement afterward . Until now, it has made three unsuccessful breakout attempts (red icons), the most recent last week. So far, the long-term trend line has been in place for 720 days.

MATIC/USDT Weekly Chart. Source: TradingView

The Relative Strength Index (RSI) is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.

The RSI is increasing and is above 50, both bullish signs.

What Are Analysts Saying?

Cryptocurrency traders and analysts  on X have mostly positive views on the future trend.

Buy Dip Crypto suggests that the price will likely go on a parabolic run only once the long-term resistance trend line is broken.

MATIC/USDT Weekly Chart. Source: X

Masha is bullish for fundamental reasons. She is impressed by stakers conviction since the total amount of MATIC staked is increasing despite a price drop. She tweeted:

Initially, from Q1, both the token price and network stake exhibit a positive trend, indicating a thriving ecosystem, where both the market value and the level of participation are on the rise. However, a shift occurs by Q3, where the token’s price decline surprisingly fuels staking growth. This suggests sustained participant confidence, portraying a positive outlook for the network’s staking ecosystem amid market challenges.

MATIC Price Prediction: Bounce or Breakdown? 

While the weekly readings are leaning bullish, the daily time frame still gives a bearish outlook. This is because of the price action and the RSI readings.

The price action shows that MATIC has returned to the $0.85 horizontal area after seemingly breaking out above it. So far, there have been two deviations above this level.

Additionally, the most recent highs combined a bearish divergence in the daily RSI. This is a sign that often precedes bearish trend reversals.

If the MATIC price closes below $0.85 , a 13% decrease to the $0.74 horizontal support area will be likely.  

MATIC/USD Daily Chart. Source: TradingView

Despite this bearish MATIC price prediction , reclaiming the $0.85 area can lead to a 45% increase to the next resistance at $1.25.

For BeInCrypto’s latest crypto market analysis,  click here.