Polygon (MATIC) loses momentum after price rejection

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.

Polygon (matic) weekly movement
MATIC/USDT Weekly Chart. Source: TradingView

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.

Polygon (matic) Price Movement
MATIC/USDT Daily Chart. Source: TradingView

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.

For the latest crypto market analysis from BeInCrypto, click here.


BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.

Source link

Leave a Comment