In a notable technical development after months of rangebound price action, Polygon’s MATIC token has broken out of a lengthy 780-day descending resistance trendline that had capped upside since its all-time high. The move signals a medium-term directional shift underway.
Per analysis of MATIC’s weekly price charts, the breakout commenced two weeks ago, cracking the formidable multi-year barrier that had dictated price action until now. This week’s extension towards $1.08 and flirtation with December 2023 peaks reinforce the emerging bullish structure.
Yet, in a caveat, MATIC trades firmly within another wider horizontal resistance zone, even despite reclaiming the major diagonal. So follow-through remains key to whether bulls maintain positive momentum above the initial ceiling.
What’s Next For MATIC?
The weekly Relative Strength Index (RSI), used to identify overbought and oversold conditions in assets, ticked back above 50 to corroborate the upside breakout with its upward-pointing trajectory. Readings holding over 50 suggest existing tailwinds outweigh any bearish forces currently.
Shorter-term data also bolsters the constructive outlook for MATIC, according to most analysts. Having reclaimed the $0.95 support after briefly losing it, Polygon appears in the midst of an extended wave three advance per Elliott Wave Theory assessments—typically the longest and strongest bullish impulse phases.
The popular predictive analysis calculates theoretically $1.54 as the next intermediate upside target after projecting wave three equals wave one’s ascent. However, some observers highlight a fresh bearish RSI divergence that risks temporary pullbacks towards $0.95 before propelling higher again.
So while MATIC shows promising signs of trend reversal after languishing below resistance for over two years, clearing upcoming obstacles remains necessary to cement a durable uptrend. Early indications simply favor such a breakout rather than rejection presently, as momentum definitively builds behind Polygon.
