The Polygon (MATIC) price broke out of a short-term channel but failed to move above the $1.04 resistance area. Doing so is critical to the future trend.
There was some Polygán news last week. First, Polygon did a Delhi hard fork on January 17, upgrading its proof consensus to improve its performance. One of the most important changes will be to reduce the rate of change for the basic gas charge from 12.50% to 6.25%.
Subsequently, Polygon announced that it had partnered with BitGo to allow holders to earn rewards through MATIC, the native token of the Polygon network.
Polygon Price Approach $1
On July 22, the price of MATIC recovered the horizontal area of $0.77, capping an upward movement that began in June. After that, it bounced above it twice (green icons), creating higher lows in price. The price of the Polygon has increased since the second bounce in December.
Technical indicator readings from the weekly time frame are bullish. This is reflected in the weekly RSI. The indicator broke out from a descending resistance line (black) and then moved above 50. Both signals are considered bullish trend.
When combined with the price action, they support the rise towards the next resistance area at $1.38. A weekly close below $0.77 would invalidate this bullish price analysis.
Short Term Increase In?
The technical analysis from the short-term six-hour chart also provides a mixed view. On the bullish side, the price broke out from a descending parallel channel and validated as support.
On the bearish side, the digital asset is struggling to move above the $1.04 resistance, created by the 0.5 Fib resistance level. In addition, the RSI has created a bearish divergence six times.
Therefore, if the MATIC voucher price breaks out above the $1.04 resistance area, it would be expected to rise to $1.15. On the other hand, if it is rejected and falls back inside the channel, a retest of the $0.77 support area would be on the cards.
Finally, whether the Polygon price successfully breaks out of the $1.04 resistance area could determine the direction of the future trend. A breakout could lead to highs near $1.15, while a rejection could lead to a retest of the $0.77 support area.
For BeInCrypto’s latest crypto market analysis, click here.
BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing or inaccurate information. You agree and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.