MATIC continues to decline along with the descending resistance line
Polygon (MATIC) has been moving along a descending resistance line since hitting an all-time high on May 18th.
Although the token has bounced off the horizontal support area, the trend cannot be viewed as bullish until a breakout above the resistance line occurs.
MATIC keeps falling
MATIC has been falling along with a descending resistance line since May 18 when it hit an all-time high of $ 2.70. During the decline, it hit just $ 0.74 on May 23.
Although the price bounced back shortly afterwards, it failed to break above the descending resistance line. It hit two lower highs (red icon) and fell back into the USD 1.05 support area.
Combined with the descending resistance line described above, this has created a descending triangle that is viewed as a bearish pattern.
In addition, the technical indicators are falling. MACD & RSI are falling while the stochastic oscillator has not yet formed a bullish cross.
A breakdown can bring MATIC into the USD 0.45 support area.
MATIC / USDT daily chart | Source: TradingView
Trader Altcoinsherpa outlined the MATIC chart and explained that the token would have to break the USD 1.70 resistance in order to move higher. This zone coincides with the descending resistance line. Hence, the trend cannot be considered bullish until the token clears it.
The shorter 2-hour chart shows a descending wedge that has been in place since June 15th. The descending wedge is viewed as a bullish reversal pattern.
Both the MACD and RSI are rising, which supports the possibility of a breakout.
If MATIC manages to break above the wedge, it will also confirm a bullish reversal with a move above the long-term descending resistance line.
MATIC / USDT 2-hour chart | Source: TradingView
MATIC / BTC
The MATIC / BTC pair has an almost identical chart to the USD pair chart.
It has been moving along a descending resistance line since hitting all-time highs on May 19th.
It hit the low on May 19, rebounded but failed to break the resistance line.
The technical indicators are also falling.
Until the pair breaks this line, the trend cannot be considered bullish.
A break below the 3,050 Satoshi support area could trigger a sharp decline.
MATIC / BTC daily chart | Source: TradingView
You can see the MATIC prices here.
Disclaimer of liability: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto