Polygon (MATIC) Struggles to Maintain Rally Against Bitcoin (BTC)
Polygon (MATIC) Price Uncertainty Could See It Fight Against Bitcoin (BTC)
Polygon (MATIC) price broke out from a short-term resistance line, but has failed to initiate a significant rally.
MATIC is the native coin of the Polygon network, a layer-2 scaling solution for the Ethereum blockchain. The weekly time frame shows that the MATIC price has been rising in an ascending parallel channel since June 2022. Ascending parallel channels usually contain corrective patterns.
Also, the 2023 high of $1.57 was made very close to the confluence of resistance levels at $1.62, created by the following:
Is polygon (MATIC) breakout starting a major rally?
The technical analysis from the daily time frame shows that the MATIC price broke out from a descending resistance line on March 29. The breakout also caused a recovery of the minor support area at $1.08. As a result, the previous decline below this area (red circle) is considered illegitimate.
Over the past 24 hours, the MATIC price has created a bullish candlestick (green icon).
Since the $1.08 area coincides with the channel’s support line, a break below it could catalyze a sharp decline. On the other hand, a bounce could lead the MATIC price towards the next resistance at $1.25, created by the 0.5 Fib retracement resistance level.
The daily RSI is right at the 50 line, indicating a neutral trend. As a result, it fails to confirm the direction of the trend.
Polygon (MATIC) Price Matches Against Bitcoin (BTC)
The MATIC/BTC chart is more decidedly bearish. The main reason for this is the triple top pattern (red icons) at the highest resistance area of 6250 satoshi. The triple top is considered a bearish pattern.
After the third peak, MATIC price started a sharp downward movement, having declined by 38.50% so far. This also caused the weekly RSI to fall below 50, another bearish sign.
If the decline continues, MATIC may fall to the low area of 2400 satoshis. On the other hand, if the price initiates a bearish reversal, it could reach the high level of 6250 satoshis again. For now, this seems unlikely.
To conclude, the MATIC/USDT pair is giving conflicting readings, making it difficult to agree on the direction of the trend. However, the MATIC/BTC price is decidedly bearish, supporting the continuation of the decline towards 2400 satoshis.
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Disclaimer
In line with Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, objective reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
