MATIC, the cryptocurrency tied to the Polygon network, is showing signs of a potential recovery. Trading around $0.43, the asset could be poised for a significant rebound, possibly reaching as high as $1.50 as highlighted by analyst ZAYK Charts.
The weekly chart for MATIC/USDT highlights a persistent bearish trend marked by descending channels. This trend has been characterized by a series of lower highs and lower lows, indicating a consistent downward trajectory over recent months. The price has faced resistance from these channels, making them crucial in understanding future movements. The upper boundaries of these channels represent significant resistance levels that MATIC must surpass to signal a recovery.
MATIC is approaching a critical support range between $0.30 and $0.35. This area has historically been a strong zone of buying interest, showing resilience during previous price declines. As the price tests this support level once more, it suggests a potential for a bullish reversal if the support holds. A solid defense of this level could set the stage for a recovery.
Polygon and Avalanche Anticipate Bullish Breakouts Amidst Falling Wedge PatternsResistance levels are not explicitly marked but can be inferred from the descending trendlines. A breakout above these trendlines could be a pivotal moment for MATIC. If the price manages to clear this resistance, it could set a course for significant upward movement.
The chart indicates a potential target of around $1.5, which would represent a notable gain of approximately 244.8% from the current price. This target aligns with historical highs and potential Fibonacci retracement levels, making it a critical point of interest.
The market dynamics are also underscored by the increasing number of MATIC holders. When MATIC first crossed the $0.44 mark in 2021, it had around 300,000 holders. Further noted by denome, a crypto analyst on X, the number of wallets holding MATIC has surged to 97 million, representing a dramatic increase of 32,000%. This substantial growth in holders may contribute to the overall market sentiment and potential upward momentum.
At press time, MATIC is valued at $0.425245, with a 24-hour trading volume of $215,854,795. Over the past day, Polygon’s price has increased by 4.96%.
Despite this positive movement, the 1-day RSI reading of 38.30 suggests that MATIC might be nearing oversold conditions, often signaling a buying opportunity for traders. Additionally, the 1-day MACD trading below the signal line indicates potential further downward pressure in the short term.
