November 29, 2023

The Polygon (MATIC) price prediction suggests that the short-term relief rally will continue for a while before a rejection initiates a sharp downward movement.

Polygon is a layer-2 scaling solution for the Ethereum blockchain. It serves to transform Ethereum into an internet of blockchains. Moreover, it helps improve its scalability regarding decentralized applications (dApps) and smart contracts. It uses the proof-of-stake (PoS) consensus mechanism. There was positive Polygon news last week. y00ts, one of the biggest non-fungible tokens (NFT) collections in the Solana blockchain, announced that it will move to the Polygon network in the first quarter of 2023.

The Polygon price has begun a short-term rally but has yet to confirm that the increase will continue in the long term.

Polygon Bounces at Support

The MATIC price had increased alongside an ascending support line since Sept. 21. The upward movement led to a maximum price of $1.30 on Nov. 5. However, the price fell shortly afterward and then broke down from the line on Dec. 16, leading to a minimum price of $0.75 on Dec. 19. This is a sign that the bullish structure is not intact anymore.

However, MATIC bounced at the $0.77 horizontal support level on Dec. 19 (green icon). The RSI also bounced simultaneously and is approaching the 50 line from below.

Due to the breakdown and ensuing bounce, the most likely MATIC prediction for January is a validation of the support line as resistance before another drop. This would also cause the daily RSI to validate the 50 line as resistance (red circle). Reclaiming the line would indicate that the future price trend is bullish instead.

MATIC Price Prediction Daily
MATIC/USDT Daily Chart. Source: TradingView

MATIC Price Prediction: Relief Rally Before Drop

The technical analysis from the six-hour chart shows that the Polygon price broke out from a descending resistance line on Dec. 20, beginning the ongoing short-term rally. The breakout was preceded by a bullish divergence in the six-hour RSI (green line). Now, the RSI has moved above 50, legitimizing the upward movement and confirming the bullish divergence.

The MATIC token price now faces resistance at the 0.382 Fib retracement resistance level at $0.83. If it is successful in moving above it, the rate of increase could accelerate toward $0.87 due to the lack of resistance above the current price.

If it gets there, it will validate the long-term ascending support line. Afterward, the most likely MATIC price prediction for January suggests that a downward movement will transpire.

Reclaiming the $0.87 area and the ascending support line in the process would mean that the trend is bullish instead.

MATIC Short-Term Breakout
MATIC/UDT Six-Hour Chart. Source: TradingView

To conclude, the most likely MATIC price analysis is an upward movement toward $0.87 followed by another drop that causes a breakdown from the $0.77 support area. Reclaiming the $0.87 area would invalidate this bearish prediction and suggest that new highs are in store.

For BeInCrypto’s latest crypto market analysis, click here.


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