In Polygon (MATIC), a bearish sentiment takes hold as weekly and daily timeframe indicators align to predict potential downward movement. The weekly technical analysis unveils a bearish landscape for MATIC. The resistance at $0.80 was a crucial point of contention, witnessing a forceful rejection and forming a lengthy upper wick.
Notably, this upper wick included well above the resistance level, indicating a swift transition of control from buyers to sellers and dragging the price beneath the resistance zone once more. This development serves as a clear signal of the ongoing bearish trajectory, with the prior support-resistance role of the $0.80 mark since July 2022 lending further credibility to this bearish trend assertion.
Amplifying the bearish tone, the weekly Relative Strength Index (RSI) plummets below 50 and continues its descent, underscoring a sentiment favoring the sellers. An RSI above 50 during an upward trend traditionally signifies a bullish outlook, while a reading below 50 points toward a bearish scenario. The declining RSI below 50 substantiates the prevailing bearish momentum for MATIC.
Yet, a glimmer of hope arises as MATIC hovers just above the 0.618 Fibonacci retracement support level, often a key rebound point after significant price shifts. The increasing volume of Polygon NFTs further bolsters the potential for a rebound. Such a resurgence could drive the price towards the channel’s $0.80 support line, now potentially functioning as a resistant barrier.
However, in case of a downside continuation, the $0.60 mark emerges as the closest support level, implying a 10% drop from the present price. Polygon(MATIC) is trading at $0.681, and over the past 24 hours, Polygon has experienced a decline of 0.41%.
While the prevailing bearish outlook dominates, a reversal is conceivable if MATIC manages to surmount the channel’s support line. Triumphing above this line at $0.80 would signal the breakdown’s invalidation, accompanied by a reclamation of the horizontal resistance at the same level. Such a turn of events might catapult the price toward $1, fostering a sudden surge.
MATIC’s path continues to reveal itself, its price direction appears ready for a bearish performance. Nevertheless, the complexities of the cryptocurrency market frequently unveil unforeseen turns, creating room for possible changes in sentiment and course.
