Challenges Persist for Polygon Price as it Seeks to Surpass 1 Dollars in December

Crypto News- Analyzing the MATIC weekly time frame reveals a prolonged struggle against a descending resistance trend line that has persisted for 700 days since its peak in December 2021. A recent rejection, marked by a red icon two weeks ago, further adds to the challenges.

Despite this resistance, MATIC is currently trading within a crucial horizontal zone, a zone that has alternated between support and resistance since April 2022. Traders closely monitor the Relative Strength Index (RSI) on weekly charts to gauge momentum and make decisions on asset accumulation or sale.

Challenges Persist for Polygon Price as it Seeks to Surpass 1 Dollars in December

With RSI readings above 50 and an upward trajectory, the bulls maintain an advantage. Fortunately, the weekly RSI shows signs of strength, remaining above 50, signaling a bullish trend. The pivotal question now is: What lies ahead for MATIC’s price?

A dive into the daily time frame paints a more complex picture. The primary reason is the deviation from and subsequent dip below the $0.86 horizontal area, a zone that has intermittently dictated support and resistance dynamics since May 2023.

Despite a brief surge above it on November 12, MATIC struggled to sustain the momentum, leading to a subsequent decline, as indicated by the red circle. The resulting dip brought MATIC to the 0.5 Fib retracement support level at $0.74.

The daily RSI presents a nuanced perspective. While the indicator is on the decline, it still holds above the bullish divergence trend line (green), established since August.

The pivotal juncture lies in the reaction to the $0.74 support level, a key determinant of the future trend. Notably, cryptocurrency trader CWTrades anticipates a short-term rebound from this level.

Should MATIC indeed bounce from the $0.74 support and breach $0.85, it could potentially surge by 60%, reaching the next resistance at $1.25. Conversely, a breakdown below the $0.74 support might trigger a 25% decline, with the next substantial support standing at $0.60.