Polygon (MATIC) is one of the leading cryptocurrencies today and it is often classified as a low-risk, high reward digital asset with a great potential to grow in future. But recently its price has dropping significantly - 17% in the past week. Will MATIC price recover from this setback?

Investors and experts alike have been studying the past behavior of MATIC’s price to determine its future trajectory. By studying the long-term weekly chart, it is evident that the price is within a long-term ascending parallel channel and has been for the past 6 months. This generally is a bearish pattern, meaning that an eventual breakdown from the channel would be the most likely outlook. It is also worth noting that the price is currently in the lower portion of the channel, suggesting further downside potential.

In addition to the channel, the weekly Relative Strength Index (RSI) gives a bearish reading as it broke down from its trendline (green line) and decreased below 50. This confirms that bears currently have the upper hand when deciding the MATIC's price direction.

Analyzing the daily time frame shows that the MATIC price has also broken down from a shorter-term ascending support line, signaling the reversal of the prior bullish trend. The price has also dropped below the $1.04 support area, indicating further decreases towards the next closest support level at $0.43. The daily RSI is below 50 and decreasing, further supporting the bearish possibility for MATIC.

On the other hand, if MATIC is able to reclaim the $1.04 support area, it is likely to result in a short-term price increase towards the area of $1.20. This means that investors should keep a close eye to any changes in the area, as it can be a crucial indicator for predicting changes in the price behavior.

Although there is no certainty of which direction the MATIC price will take, the technical analysis suggests that should the price break down from the long-term ascending parallel channel, it could open up a way for decreases towards the next support zone in the$0.43 area. On the contrary, if the price rebounds at the channel’s support and reclaims the $1.04 area, investors should expect an increase towards the midline at $1.40. The key takeaway here is that MATIC remains a high-risk, high-reward asset and its investors should monitor the price closely and be ready to take the necessary steps when needed.



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