Critical price zone
MATIC price has been falling along with a descending resistance line since reaching an all-time high of $2.92 in December 2021. The drop resulted in a low of $0.31 in June 2022.
After that, the Polygon price started an upward movement and broke out above the resistance line in July, regaining the $0.80 horizontal support area. This is an important zone because except for the deviation from May to July 2022 (red circle), MATIC has held steady from May 2021.
MATIC price validated this line/area as support in August (green icon) and has been moving up since then. It returned to the $0.8 zone again in November. The weekly RSI remains undecided, as it is trading right at 50.
So, a breakdown from the $0.80 support area will have a lot of downsides, as it also causes the RSI to break below 50.
Wave counts
There are two potential wave counts for MATIC.
The number of rising waves indicates that Polygon price started a bullish reversal on June 18. It then completed an irregular flat correction between August 14 and November 9 (highlighted).
If so, the MATIC price will continue to rise to new highs. The wave count is still valid even though the price has dropped slightly in the last 24 hours. However, a drop below $0.76 will invalidate it (red line).
The decreasing number of waves shows that MATIC has completed an A-B-C correction structure. In which, the A:C wave has a ratio slightly smaller than 1:1. If true, that means the price will drop to a new yearly low. The wave count will be invalidated when the price rises above the high of wave C at $1.30 (red line).
Similar to the weekly time frame, the RSI is at 50. Therefore, the direction of the future movement is still undetermined.
Disclaimer: This article is for informational and spectacular purposes only, not investment advice. Investors should research carefully before making a decision.
(Reference: BeInCrypto)
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