HomeNewsPolygon's December Drama: Will MATIC Conquer the $1 Milestone?

Polygon’s December Drama: Will MATIC Conquer the $1 Milestone?

- Advertisement -
  • Polygon (MATIC) struggles to overcome a descending resistance trend line in place for 700 days, facing rejection at critical price points.
  • Key indicators like the Relative Strength Index (RSI) and support at $0.74 are crucial in determining MATIC’s potential to rise or fall in value.

The Challenge of Breaking Resistance

Polygon (MATIC), a significant player in the blockchain space, is currently grappling with overcoming a long-standing resistance trend. Despite attempts to break free, MATIC has been consistently rejected by a descending resistance trend line that has been in place for 700 days. This trend line’s persistence raises questions about MATIC’s ability to achieve new highs, particularly the sought-after $1 mark.

Understanding MATIC’s Price Movement

The technical analysis on a weekly time frame reveals that MATIC’s price has been under the influence of this descending resistance since its all-time high in December 2021. The impact of this trend is evident, with MATIC experiencing a rejection two weeks ago, signifying the trend line’s continued relevance. Notably, MATIC still trades within a critical horizontal area that has alternately served as support and resistance since April 2022.

The Role of Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a pivotal tool for market traders, providing insights into overbought or oversold conditions. For MATIC, the weekly RSI presents a somewhat optimistic picture, with an upward trend and a reading above 50, suggesting a potential bullish momentum.

Daily Time Frame Analysis: A Mixed Outlook

Shifting to the daily time frame, MATIC’s outlook becomes more complex. The main challenge lies in the deviation and subsequent fall below the $0.86 horizontal area, a significant level of support and resistance since May 2023. While MATIC briefly moved above this threshold on November 12, it failed to sustain the rise, leading to a subsequent drop.

Currently, MATIC is hovering near the 0.5 Fibonacci retracement support level of $0.74. The daily RSI, while on a downward trajectory, remains above a bullish divergence trend line in place since August. This indicates that the reaction to the $0.74 support level will be critical in determining MATIC’s future trend.

Potential Scenarios for MATIC

If MATIC successfully bounces at the $0.74 support and surpasses the $0.85 level, there is a potential for a 60% increase, targeting the next resistance at $1.25. Conversely, a breakdown from the $0.74 level could lead to a 25% decrease in MATIC’s price, bringing it down to the next support at $0.60.

In summary, Polygon (MATIC) is at a critical juncture, with its future price trajectory heavily dependent on its response to key resistance levels and indicators. Whether MATIC can overcome these challenges to achieve new highs remains a closely watched aspect of its journey in the blockchain market.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628