Polygon (MATIC) price exited from a long and short term bearish pattern. As a result, a significant upward move is expected.
MATIC price has declined since reaching an all-time high of $2.92 in December 2021. The downside movement led to a low of $0.31 on June 13.
Later, MATIC reversed course, breaking above the line in July and reaching a high of $1.05.
While the price of Polygon is declining, a strong bullish trend is indicated by the weekly RSI. The indicator has broken above its bearish divergence trend line (green) and is now in the process of moving above 50.
Combined with a breakout from the long-term descending resistance line, this RSI movement confirms a bullish reversal.
The next nearest resistance area is at $1.32, which is formed by both the 0.382 Fibonacci Retracement resistance level and a horizontal resistance area. This is likely to provide resistance to the future price.
Polygon breakout leads to sharp jump
The technical analysis from the daily time frame provides a bullish polygonal price forecast.
Firstly, it shows that MATIC price has broken above a descending resistance line.
Secondly, it shows that the price has also broken out of the short-term ascending parallel channel.
Finally, the daily RSI has broken above its bearish divergence trend line (black) and has even moved above 50. All three are bullish signals which indicate that the upward movement is expected to continue.
MATIC Price Prediction: $1.30 in sight
In addition to the Bullish readings from the weekly and daily time frames, the wave count is also Bullish. Measured from yearly lows, MATIC price has completed a five-wave upward movement (red). This is the potential wave A in the ABC corrective structure (black).
The ratio of waves A:C to 1:1 gives the maximum price of $1.43. It is very close to the resistance area mentioned earlier. So, the confluence of these two levels shows that it is likely that the price will hit the top there.
Conversely, a downside break below the wave B low (red line) of $0.69 would invalidate the bullish hypothesis and suggest that Polygon price is still correcting.
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