Polygon (MATIC) Price Prediction – Will Price Reach $2 Next?

The Polygon (MATIC) worth broke out from a 780-day descending resistance pattern line however trades inside horizontal resistance.

MATIC has almost reached its December 2023 excessive at $1.10. Will it escape and speed up its enhance?

Polygon Breaks Out from Lengthy-Time period Resistance

The weekly time-frame technical evaluation exhibits the MATIC worth broke out from a 780-day descending resistance pattern line two weeks in the past. Earlier than, the pattern line had existed because the all-time excessive. Right now, MATIC reached a excessive of $1.08, barely beneath the December 2023 excessive.

It’s value mentioning that regardless of the breakout from the long-term pattern line, MATIC nonetheless trades inside a long-term horizontal resistance space.

The weekly Relative Energy Index (RSI) helps the breakout. When evaluating market circumstances, merchants use the RSI as a momentum indicator to find out whether or not a market is overbought or oversold and whether or not to build up or promote an asset.

If the RSI studying is above 50 and the pattern is upward, bulls nonetheless have a bonus, but when the studying is beneath 50, the other is true. The indicator bounced at 50 (inexperienced circle) throughout the breakout, indicating a bullish pattern.

MATIC Value Prediction: Is $1.50 the Subsequent Cease?

Just like the weekly time-frame, the day by day one additionally offers a bullish studying due to the worth motion and wave depend.

The value motion exhibits that MATIC broke out from the $0.95 horizontal space and validated it as help (inexperienced icon) on February 21. The wave depend validates the upward motion. Technical analysts make the most of the Elliott Wave idea to establish the pattern’s route by learning recurring long-term worth patterns and investor psychology.

The almost definitely depend means that the MATIC worth is in wave three in a five-wave upward motion. Giving waves one and three the identical size results in a excessive of $1.54, almost 50% above the present worth. Nonetheless, the day by day RSI exhibits weak point within the type of a bearish divergence.

Regardless of this bullish MATIC worth prediction, the MATIC worth can fall 10% to the $0.95 horizontal help space if the bearish divergence performs out. Nonetheless, this is not going to invalidate the bullish depend however moderately be a short lived lower earlier than the upward motion resumes.

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