Polygon (MATIC) has experienced a price decrease since December 9, with the drop intensifying shortly thereafter. The descent aligns with a long-term descending resistance trend line, in place since its all-time high in 2022, lasting nearly 730 days. Despite the decline, MATIC remains above a crucial horizontal area.
The Relative Strength Index (RSI), a key momentum indicator, provides mixed signals. While the weekly RSI remains undetermined, the daily RSI suggests a bearish trend, indicating a potential correction. If MATIC surpasses the corrective wave B high of $0.95, it could signal the end of the downturn.
Analysts offer varied predictions. Crypto Dave expects MATIC to potentially reach $1, provided it stays above $0.72. Conversely, other analysts, like Dark Green, foresee a decisive bearish trend, predicting a long correction and a fall from the top 20 cryptocurrencies by market capitalization.
Elliott Wave theory, used by technical analysts to understand price patterns and investor psychology, suggests MATIC has completed a five-wave upward movement and is currently in a corrective phase. A bearish divergence in the daily RSI supports this view. If the downward trend continues, the target for the C wave could be around $0.68, a 13% drop. However, breaching the wave B high at $0.95 could lead to a significant 50% increase, pushing MATIC to the next resistance level at $1.15
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
