Polygon (MATIC) has broken above a long-term descending resistance line. There is a possibility of an upside move once it manages to break out of the current short-term resistance.
MATIC has been declining below a descending resistance line since reaching an all-time high of $2.92 in December. The downside movement so far has given rise to a June low of $0.31.
The price later reversed (green icon), confirming the $0.37 horizontal area as support.
On 8 July, it broke through the descending resistance line. At this time the line was engaged for 189 days. So far, the price has reached a high of $0.985. If the upward move continues, the nearest resistance area will be $1.31, formed by the 0.382 Fibonacci retracement resistance level.
An interesting development is the movement of the weekly RSI, which is currently attempting to move above 50 (green circle). If it does, it would be a strong indication that the trend has turned bullish.
current resistance
A closer look at the daily time frame shows that MATIC is still following a descending resistance line, albeit of a shorter duration. The line caused rejection on 31 March and 18 July.
The daily RSI is still rising even though it is in overbought territory. Also, there is no bearish situation as of now. So, it is possible that the price will indeed break out.
If this happens, the previously mentioned $1.31 Fibonacci resistance was also outlined with a horizontal support area, which is now expected to provide resistance.
cryptocurrency trader @CryptoGodJohn said that MATIC is one of the coins that can continue to perform well, as it has more than double From the bottom of 13 June.
For the rate of increase to continue and potentially accelerate, the price needs to break above the short term descending resistance line.
FUTURE MATIC MOVEMENT
The wave count supports the continuation of the upward movement. This is because the price has broken out of an ascending parallel channel, indicating that the rise is not corrective.
Therefore, it is likely that the price is in wave three of a five-wave upward movement (black) which has extended. The sub-wave count is given in red.
Therefore, the upward momentum is expected to continue after a possible short-term pullback.
For Be[in]Latest Bitcoin (BTC) Analysis of Crypto, click here