Polygon Price Approaches Critical Level – Could It See a 20% Surge or a 10% Decline?

Crypto News- The Polygon (MATIC) price has displayed modest gains since September 11, as it endeavors to breach a well-established descending resistance trendline.

This noteworthy resistance trendline, persisting since February, holds significant implications for shaping the future trajectory of the cryptocurrency.

Polygon Price Approaches Critical Level – Could It See a 20% Surge or a 10% Decline?

Upon scrutinizing MATIC’s daily price performance, we discern a descending resistance trendline that emerged on February 28, a date coinciding with MATIC’s pinnacle for the year, reaching $1.57.

During this period, MATIC dipped below the $0.60 support level, officially confirming it as resistance on August 29 (indicated by the red icon). This alignment corresponded with the most recent contact with the descending resistance trendline, further reinforcing its validity. However, MATIC has recently embarked on an endeavor to liberate itself from this trendline’s grip. A successful breach beyond this barrier could signify the culmination of the correction phase, paving the way for a fresh upward trajectory.

Conversely, a failure to overcome this resistance may imply that the correction is still in progress. Despite the prevailing bearish sentiment in price action, the daily Relative Strength Index (RSI) offers indications of a potential shift toward a bullish trend.

The RSI, a widely favored tool for momentum assessment by traders, typically interprets an RSI reading above 50 as a favorable signal for bullish traders during uptrends, while a reading below 50 signals bearish sentiment.

Presently, the RSI sits below 50 but exhibits an upward trajectory. Of more notable significance is the conspicuous bullish divergence (illustrated by the green line). This divergence materializes when heightened momentum aligns with a dip in price, often foreshadowing forthcoming bullish trend reversals.

MATIC Price Projection: Corrective Pattern Support in Progress

The six-hour MATIC price chart portrays an indeterminate trend. However, the short-term perspective appears more bullish compared to the daily outlook.

This optimism primarily stems from MATIC’s current position within a descending parallel channel, a pattern commonly associated with corrective movements, suggesting a probable breakout in the near future.

Furthermore, the cryptocurrency presently trades above the channel’s midpoint (indicated by the green icon), adding further credence to the bullish case.

Nevertheless, it is important to note that the six-hour RSI does not unequivocally confirm the possibility of a trend reversal. The indicator remains situated below the 50 threshold (as denoted by the red circle), signifying a bearish trend.