Polygon (MATIC) Faces Critical Resistance Trendline, With Two Possible Scenarios

• MATIC reached its all-time high in December 2021 but then experienced a significant decline.
• The token has been struggling with a descending resistance trendline for over 750 days.
• There was a recent failed breakout attempt that resulted in a bearish engulfing candlestick pattern.

MATIC’s price history tells a story of resilience and struggle. After hitting its all-time high in December 2021, MATIC experienced a sharp decline, reaching $0.32 in June 2022. However, since that low point, the price has displayed an upward trajectory.

Despite these positive movements, the cryptocurrency has grappled with the descending resistance trendline that has loomed large for over 750 days. Notably, this trendline has been a formidable barrier, rejecting MATIC’s breakout attempts, including the most recent ones in November and December 2023 (highlighted in red icons).

One significant setback for MATIC was a failed breakout attempt that culminated in a bearish, engulfing candlestick just two weeks ago. As it stands, MATIC is currently trading below the long-standing descending resistance trendline.

Exploring MATIC’s Future Scenarios

Zooming in on the daily timeframe, MATIC’s immediate future presents two potential scenarios based on Elliott Wave theory—a tool used to analyze recurring long-term price patterns and investor psychology.

The bullish count proposes that MATIC has completed an A-B-C corrective structure (depicted in white) confined within an ascending parallel channel. If this count holds, the bounce on January 8 (indicated in green) signaled the end of the correction, marking the commencement of the fifth wave (highlighted in black).

In this optimistic scenario, the coin could potentially surge by nearly 40% towards the channel’s resistance trendline, situated at $1.18.

On the other hand, the bearish count suggests that the five-wave upward movement has concluded, with wave four forming a symmetrical triangle. According to this interpretation, MATIC is currently navigating the C wave of its correction, which could trigger a 22% retracement towards the closest support at $0.65.

The direction of MATIC’s price hinges on its ability to break out of the channel. A bullish escape could lead to a 40% gain, while a bearish downturn might result in a 22% decline. As the cryptocurrency community watches closely, MATIC’s next move will be pivotal in determining its short-term fate in the market.

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• Source: https://thenewscrypto.com/polygon-matic-faces-critical-resistance-trendline-with-two-possible-scenarios/