The Polygon (MATIC) price has undergone a decline since November 14, marking a lower high on December 9 and returning to a crucial horizontal support zone. The pivotal question now is whether this support area will hold and initiate a rebound, or if a breakdown is imminent.
Will Polygon Price Experience a Recovery Following Substantial Declines Since November?
Analyzing the daily timeframe, technical indicators reveal that MATIC’s price witnessed an uptrend since October, breaking free from a descending resistance trend line. This upward trajectory culminated in a peak of $0.98 on November 14. Following the breakout, MATIC successfully surpassed a significant horizontal resistance level that had been intact since June. However, it subsequently retreated below, forming a lower high in December, indicated by red icons.
The Relative Strength Index (RSI), a key momentum indicator, is employed by traders to assess market conditions and make decisions on asset accumulation or selling. Readings above 50 in conjunction with an upward trend favor the bulls, while readings below 50 signal the opposite. Presently, the RSI, although above 50, is on a downward trend, accompanied by a bearish divergence (green line), signaling a potential decline in momentum.
The sentiment within the cryptocurrency community, particularly on platform X, leans towards optimism regarding the future price trend of MATIC. Analysts such as Dark Green have highlighted a long-term symmetrical triangle, drawing parallels to 2021 when MATIC experienced significant acceleration post-breakout from a similar pattern, suggesting a potential positive trajectory.
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