Polygon (MATIC) price finally closed above the long-term descending resistance trendline where it had held since its all-time high.
Despite the breakout, MATIC failed to accelerate its growth rate. Will that happen soon?
Polygon Closes Above Long-Term Resistance
MATIC price has fallen below its long-term descending resistance trendline since December 2021, when it was trading at an all-time high of $2.90. The rate of decline was rapid, reaching a record low of $0.32 in June.
Afterwards, MATIC began an upward trend but failed to break through. Rather, a downward resistance trendline rejected the price in February 2023 (red icon).
After higher lows and two more failed breakout attempts, MATIC finally broke out last week and closed above the resistance trendline. At that time, the trend line was maintained for almost 730 days.
Market traders use the Relative Strength Index (RSI) as a momentum gauge to recognize overbought or oversold situations and decide whether to acquire or dispose of assets.
If the reading is above 50 and shows an upward trend, the bulls will maintain the upper hand. Conversely, readings below 50 indicate a disadvantage for the bulls. Weekly RSI is trending upward and is above 50, indicating a bullish trend.
Learn more: What is Polygon (MATIC)?
What do analysts think?
Cryptocurrency traders and analysts at X are optimistic about the future MATIC price trend.
Crypto Rover believes that a breakout of the symmetrical triangle pattern will cause the price to reach $1.15.
Rekt Capital suggests that the price will retest the breakout level and resume its rise. He tweeted:
Finally, we tag blue resistance for a +44% rally. It gets rejected there and now falls to the top of the ascending triangle. #Matic At this point the retest attempt begins, and if the retest is successful, you can revisit the blue resistance above.
Finally, Lord Bull commented: Breakaway from long-term downward resistance trend line And they suggested this would fuel a rise to new all-time high prices.
Read more: How to Buy Polygon (MATIC)
MATIC Price Prediction: Will the price move above $1 again?
Looking at the daily time frame, we can see that the MATIC price trend is bullish. This is due to price movements and RSI readings.
The price action shows that MATIC has broken out of the symmetrical triangle and the $0.95 horizontal zone. It is then verified as supported (green icon). The daily RSI is consistent with the bullish outlook as the indicator has broken out of the bearish divergence trend line (green).
If the uptrend continues, MATIC could increase by 55% and reach the next resistance level at $1.55.
Despite this optimistic MATIC price prediction, a close below $0.95 would invalidate the ongoing breakout. If this happens, there could be a 25% decline to the nearest support at $0.75.
Click here to view BeInCrypto’s latest cryptocurrency market analysis.
disclaimer
In accordance with Trust Project guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions may change without notice. Always do your own research and consult with a professional before making any financial decisions. Our Terms of Use, Privacy Policy and Disclaimer have been updated.