Is Polygon (MATIC) Price Heading to $2?

Polygon (MATIC) price has broken out of the long-term diagonal resistance and is about to move above another resistance.

In the short term, MATIC is trading at the top of its range, raising the question of whether it will successfully breakout or face rejection.

Polygon price clears long-term resistance

Movement on the weekly timeframe shows that MATIC has been rising since October 2023. The bull market two weeks ago triggered a breakout from the long-term downward resistance line that had existed since the all-time high. At the time of the breakout, the trend line had been held for 780 days.

Today, MATIC price reached a high of $1.08 and remains above the long-term horizontal resistance area.

MATIC/USD weekly chart. sauce: TradingView

The weekly Relative Strength Index (RSI) confirms the price increase. RSI is a momentum indicator that traders use to assess whether a market is overbought or oversold and whether to accumulate or sell assets.

A reading above 50 and an uptrend suggests that the bulls still have the advantage, while a reading below 50 indicates the opposite. The indicator has rebounded at 50 (green circle) and is increasing. Both are signs of a bullish trend.

MATIC Price Prediction: Breakout Confirmed?

The weekly chart shows a bullish reading, but the daily chart is mixed. This is due to price fluctuations, RSI readings, and wave numbers.

First, the wave number is bullish. Technical analysts use Elliott Wave Theory to confirm trend direction by studying recurring long-term price patterns and investor sentiment.

The most likely calculations suggest that MATIC price is in the third of five up waves. Given a 1:1 ratio between waves 1 and 3, the high would be close to $1.55. To reach this, MATIC must be increased by 47%. Still, price action is undecided as MATIC is trading below the $1.05 resistance.

Read more: Polygon (MATIC) Price Prediction 2024/2025/2030

MATIC price prediction
MATIC/USDT daily chart. sauce: TradingView

Finally, the daily RSI is bearish as it is generating a bearish divergence (green). As a result of these different readings, whether MATIC price moves above $1.05 or is rejected could determine future trends. A successful breakout could trigger an almost 50% rally to $1.55, while a rejection could result in a 10% decline to the nearest support at $0.95.

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