- MATIC experienced a significant rebound following a crucial announcement about upgrading transaction fee calculations.
- Despite the positive development, MATIC has been grappling with a bearish pattern for almost 60 days.
- MATIC’s price fell below a descending resistance trend line that has been in place since its all-time high of $2.90.
Polygon (MATIC) experienced a noteworthy rebound recently following a crucial announcement from its development team regarding a substantial upgrade in transaction fee calculations. However, despite this positive development, MATIC continues to grapple with a bearish pattern that has persisted for nearly 60 days.
Polygon declines from trend line
The decline of the MATIC price below a long-standing descending resistance trend line, in place since its all-time high of $2.90 in December 2021, has been a persistent challenge.
After reaching a low of $0.32 in June, MATIC struggled to break free from the downward trend, facing multiple rejections from the resistance line. While December showed signs of a breakthrough, a subsequent bearish candlestick invalidated the breakout, underscoring the enduring nature of the trend.
Traders often turn to indicators like the Relative Strength Index (RSI) to gauge market momentum and identify potential overbought or oversold conditions. Currently, the weekly RSI for MATIC hovers above 50 but is on a downward trajectory, presenting mixed signals and leaving the overall trend undetermined.
Analyst Perspectives on MATIC’s Future
Despite the ongoing challenges, cryptocurrency traders and analysts, such as Captain Faibik, express optimism about MATIC’s future. Faibik anticipates a substantial 600% rally once the price successfully breaks out of its long-term pattern.
Keep Accumulating $MATIC for the Midterm/Longterm.
Massive Bullish Rally incoming#Crypto #MATIC #Polygon pic.twitter.com/ACvpgdu4w2
— Captain Faibik (@CryptoFaibik) January 6, 2024
Last week, Polygon’s development team unveiled a crucial upgrade concerning transaction fee calculations on the Polygon zkEVM. The new mechanism leverages execution data in transactions to provide users with more accurate and comprehensive transaction fee information.
While the daily timeframe analysis provides a mixed outlook due to the prevailing bearish pattern since November 2023, a recent bounce saved MATIC from a potential breakdown. The emergence of a bullish hammer candlestick following a rejection from the channel’s resistance trend line on December 27 signals a possible reversal.
