Holding Above Key Level Could Propel Polygon (MATIC) Price to Over 20% Gain
The price of Polygon (MATIC) has rebounded from long-term support and broken above short-term resistance. Will this help it recover in the near future?
The price of Polygon (MATIC) has been trading within the range of $0.73 to $0.96 after being rejected by long-term resistance in early November 2023 (red arrow).
During the week from January 22 to 28, 2024, it bounced from the range’s support and formed a bullish pin bar candle (green arrow), suggesting strong buying pressure at this support level.
The weekly RSI (Relative Strength Index) has consistently remained above the 50 level for the past several weeks, indicating that the advantage still lies with the bulls.
Therefore, MATIC price is likely to rise to the resistance level of the range in the near future. This corresponds to a potential increase of 21.25% from the current price.
The 4-hour chart shows that MATIC has broken above a short-term resistance line and confirmed it as support on January 24, 2024 (green arrow).
Although the price did not surge significantly afterward, it successfully held above the horizontal support at $0.76 and formed a higher low.
The 4-hour RSI has broken above the short-term resistance line and risen above the 50 level, indicating that the bulls have regained control.
So, the 4-hour chart supports the bullish outlook from the weekly time frame.
The most likely scenario suggests that the MATIC price will continue to rise in the near future. The potential target for this movement is $0.96.
The bullish view would be invalidated if the price breaks below the range’s support at $0.73 on the weekly timeframe.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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