Key Takeaways:
- MATIC price is signaling a bullish breakout from the $0.495 zone.
- It broke a crucial bearish trend line with resistance near $0.550 on the daily chart.
- The price could rally toward $0.65 or even $0.70 in the coming days.
NEW DELHI (CoinChapter.com) — Polygon’s MATIC is showing bullish signs above $0.550. The current price action suggests high chances of more gains toward $0.70.
MATIC Price (Polygon) Clears Key Hurdle
In the past few weeks, MATIC’s price steadily declined from the $0.90 resistance. The price traded below the $0.72 and $0.65 support levels.
The bears even pushed it below the $0.50 support. However, Polygon remained well-bid near the $0.50 zone. The last swing zone at $0.50 in June 2023 again acted as a support. A low was formed at $0.4939, and the price recently started a recovery wave.
There was a break above a key hurdle at $0.55. MATIC surpassed a crucial bearish trend line with resistance near $0.550 on the daily chart.
It is now trading above the $0.580 level and 50-day simple moving average (blue), which is a bullish sign. Besides, it seems like the bulls are pushing the price above the 23.6% Fib retracement level of the downward move from the $0.8914 swing high to the $0.4939 low.
Considering the recent bullish break, there are high chances of more gains in MATIC above $0.60. Initial resistance above $0.60 is near the $0.65 region (a multi-touch zone).
The first major target for the bulls could be $0.70. It is near the 50% Fib retracement level of the downward move from the $0.8914 swing high to the $0.4939 low. If the bulls push the price above the $0.70 resistance zone, there could be a drift toward the $0.740 resistance.
In the past few days, there were a few positive events, such as Google Cloud joining as a validator for Polygon PoS and Astar Network introducing the Astar zkEVM, combining Gelato and Polygon tech. It seems like MATIC’s price could capitalize and rise, especially if Bitcoin and Ethereum regain strength.
Fresh Decline?
There could be a downside correction if MATIC fails to clear the $0.60 resistance or $0.65. Immediate support sits at $0.565. The first major support is now forming near $0.55 and the 50-day simple moving average (blue).
A downside break and daily close below $0.55 could spark bearish moves. The next major support is at $0.50. The price could accelerate lower if the bulls fail to protect the $0.50 support. In the stated case, there is a risk of a drop toward the $0.465 support, below which the bears might target $0.432.
Overall, MATIC price is signaling a bullish break above $0.55. If the bulls remain in action, Polygon could rally 15%-20% and aim for a move toward $0.70. Conversely, the price could retest the $0.55 support.
