MATIC is the native token of the Polygon network, a layer-2 scaling solution focused on smart contracts. Technical analysis of the MATIC daily time frame showed that the price broke out above the descending resistance line on March 29. This confirmed the reclaiming of the minor support area at $1.08. Also, it made the drop below the before area (red circle) invalid.
However, the price was unable to sustain the upward movement despite the breakout. Moreover, it did not even reach the 0.5 Fib retracement resistance at $1.25. So, another bear run is possible.
If the price drops below the $1.08 support area, it can cause a significant drop to the next support at $0.95. However, MATIC’s price could eventually reach the $1.25 resistance level if a bounce occurs.
The daily RSI is below 50 and is declining. Therefore, it is more suitable for the possibility of the hypothesis.
Technical analysis from the short-term two-hour chart suggested a breakdown below the $1.08 zone is more likely. The reason for this is the break below the short-term ascending parallel channel. Such channels often contain corrective movements such as an A-B-C structure within the channel. Therefore, its presence indicated the downtrend and the previous gain is a correction.
A downward movement equal to the full height of the previous drop (highlighted) will bring MATIC to $0.95, bringing more confluence to the support zone.
In summary, the most likely Polygon price forecast is a break below the $1.08 horizontal support area and a drop to $0.95. Reclaiming the previous channel will invalidate this bearish hypothesis and possibly lead to a rally to $1.25.
* Disclaimer: This article is for informational purposes only, not investment advice.