The Polygon (MATIC) price reaction to the $1.25-$1.32 resistance area could determine the future trend.
Polygon Networks is a scaling solution for the Ethereum blockchain, specializing in smart contracts. Its native token is MATIC. UniLend, a decentralized finance platform, announced its launch on ZK Rollup (Zero-Knowledge). Its previous testnet has over 10,000 users.
Polygon (MATIC) remains in long-term range
Since August 2022, MATIC price is trading above the $0.80 horizontal support area. The price failed to break above the high of $1.40 even though it bounced above it several times.
MATIC token formed a long lower wick during the week of March 6-13, possibly starting an upward movement towards the higher range of $1.40. It is also supported by the weekly RSI, which is trading above 50.
However, if the rally loses momentum, Polygon price could decline further towards the low $0.80 level.
Is Polygon (MATIC) Completing the Relief Rally?
Daily time frame technical analysis indicates that MATIC price is in wave B of an ABC corrective structure. After its completion, another drop will come.
This is because the price completed a five-wave upward momentum move (black) before breaking above the rising support line. As a result, there is potential for growth.
If the count is correct, MATIC price will rise to the 0.5-0.618 Fib retracement resistance (white) level at $1.25-$1.32. After this, another drop will come. Due to the fact that the daily RSI was rejected by 50 (red icon), it is possible that the price has now started a C wave that will take it towards the $0.81 support area, which coincides with the previously mentioned range. eats.
On the other hand, a decisive close above $1.32 would invalidate this bearish forecast. In that case, MATIC price could continue to rise towards the long-term resistance at $1.40 and possibly break it towards $1.92.
To conclude, the most likely MATIC price forecast is a decline to $0.81. However, a close above $1.33 would invalidate it and could start an increase towards $1.40 and possibly $1.92.
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