In the ever-evolving world of cryptocurrencies, Polygon (MATIC) has been making waves recently. Traders and crypto enthusiasts are keeping a keen eye on MATIC’s price movement as it attempts to break free from a long-term descending resistance line. This development has the potential to shape the future trajectory of this digital asset.

The Descent and the Breakdown

Since reaching its peak for the year at $1.57 on February 28, MATIC’s price has been on a downward trajectory, marked by a descending resistance line. This descent was further punctuated when MATIC broke down from the $0.60 support level on August 29, subsequently confirming it as a formidable resistance barrier.

This validation of resistance marked a significant moment, signifying a bearish trend. Interestingly, it also served as the last touchpoint on the descending resistance line, indicating a consistent downward pressure on MATIC’s price. However, the crypto market is never devoid of surprises.

The Breakout Attempt

In a surprising turn of events, MATIC has recently shown signs of resilience and is making a bold attempt to break free from the clutches of the descending resistance line. This breakout attempt has caught the attention of traders and analysts alike, as it has the potential to set the stage for significant price movements.

If MATIC’s price successfully breaks above this long-standing resistance line, there’s room for optimism with the possibility of a 60% price surge, potentially reaching the $0.85 resistance level. However, the crypto market is known for its unpredictability, and the opposite scenario should not be ruled out. If MATIC faces rejection once more, a 35% drop could be on the horizon, leading it to the nearest support level at $0.35.

RSI Signals Hope

While the prevailing sentiment in MATIC’s price action leans toward bearishness, there is a glimmer of hope in the form of the Relative Strength Index (RSI). The RSI is a valuable tool used by traders to gauge momentum and identify whether a market is overbought or oversold, guiding their buying and selling decisions.

Although the RSI currently rests below the pivotal 50-mark, there’s an encouraging trend to note. It is on an upward trajectory and has displayed significant bullish divergence (indicated by the green line). This divergence occurs when momentum increases while the price decreases, typically preceding bullish trend reversals. In MATIC’s case, this divergence could potentially be the harbinger of a breakthrough from the long-term descending resistance line.

Short-Term Outlook

Zooming in on the short-term, the six-hour timeframe presents a mixed picture. On the bullish side, MATIC recently broke out from a descending wedge formation that had been in place since the beginning of the month. Such breakouts are often indicative of a bullish trend and tend to result in substantial price increases.

However, the bearish perspective cannot be ignored. MATIC’s price dipped below the $0.53 horizontal area instead of confirming it as a strong support. The $0.53 region has played a pivotal role, intermittently acting as both support and resistance since August 21. Therefore, whether MATIC reclaims this level or falls below it will be a critical factor in determining its future trend.

The six-hour RSI currently hovers around the 50-mark, reflecting an uncertain trend for the cryptocurrency.

Looking Ahead

In conclusion, the future price prediction for MATIC hangs in the balance, awaiting decisive moves. The key determinant lies in whether Polygon can reclaim the $0.53 area or succumbs to a bearish pullback. A successful reclamation of this level would not only signal a breakout from the long-term resistance line but could also pave the way for a substantial 60% price increase. Conversely, a rejection could see MATIC experiencing a 35% drop.

As with any cryptocurrency, it’s important to exercise caution and conduct thorough research before making investment decisions. The crypto market is known for its volatility, and factors beyond technical analysis can influence price movements. Therefore, staying informed and being prepared for various scenarios is crucial for traders and investors in the world of Polygon (MATIC).