Polygon (MATIC) Price Analysis: Will Support Hold Amidst Long-Term Resistance?

• Analysts observed that Polygon (MATIC) has breached its short-term descending resistance trendline, but is still below a Fib resistance level.

• It is predicted that a breakout above the 0.382 Fib retracement resistance could trigger a 13% surge, but failure to do so could trigger a 12% fall. 

Polygon (MATIC) joins the broad market in the ongoing rally with an explosive growth of 5% in the last 24 hours, causing an extension of its weekly gains to 11%. According to market data, MATIC currently has a bullish sentiment, a market cap of $8,386,502,562, and a trading price of $0.873414. 

Subjecting its price behavior to technical analysis, analysts have observed a relieving breakout from its short-term descending resistance trend line. Unfortunately, the asset has failed to breach a Fib resistance level. A quick look at its weekly time-frame chart indicates that MATIC made some good runs since October 2023. 

In November, it finally overtook a horizontal resistance area, sustaining the level and gradually moving into a yearly high position of $1.09 in December 2023. However, bears took absolute control over the market, dragging the asset down the price curve.

The buying pressure around the horizontal area created “a hard to break” support, making the asset trade a little above this level till it staged a bullish reversal in January 2024. The January rally was linked to the positive reactions surrounding the spot Bitcoin Exchange-Traded Fund (ETF) approval, however, the momentum was not enough to send MATIC above its long-term descending resistance trendline existing for 780 days. 

A look at its weekly Relative Strength Index (RSI) shows that MATIC is bullish with a reading above 50. Its daily chart also indicates that the asset has been extending its price growth since January 23, breaching a descending resistance trend line five days later.

More on the Polygon (MATIC) Price Analysis

According to the analysts, this breakout was a contributing factor to its $0.87 on February 10. 

It is important to note that the asset was earlier rejected by the 0.382 Fib retracement resistance level, pushing its RSI to almost below 50, and has struggled to recover ever since. Regardless, crypto analysts ColdBloodShill expect MATIC to stage a bullish run against all odds. 

Is $MATIC doing that thing where it’s like “haha im so weak at resistance oooh please short me” then BAM it hits the upside. 

According to the analysts, the future move of MATIC would largely depend on the reaction to the 0.382 Fib retracement resistance. A successful breakout could lead to a 13% surge, targeting $0.92 as its next resistance level. However, failure to overcome bears could trigger a 12% fall, which could send the price to its next support of $0.72. 

Late last year, renowned analyst Ali Martinez predicted a bullish run due to the formation of a symmetrical triangle pattern in its weekly price chart. He observed that the pattern was hovering around the $0.96 point, and aligning with the 50% Fibonacci retracement level. He predicted that a breakout above this level could send the price to $1.82.

At that point, IntoTheBlock had disclosed that 42,000 addresses accumulated about 5.8 billion MATIC between $0.80 and $0.86. Based on the current price, this critical resistance level has been breached and could propel the asset to a new yearly high.

Given the minimal resistance ahead, Polygon seems primed for a bull run, provided that this level holds firm.