The price of Polygon (MATIC) has broken down below a support line of its long-term structure, suggesting that its upward movement has ended. The daily time frame reinforces the bearish trend with the creation of a bearish pattern. Based on technical analysis of the long-term weekly timeframe, the outlook for MATIC is bearish for several reasons. Firstly, the token has broken down from an ascending parallel channel, and a breakdown indicates that more downside is expected. Secondly, the Relative Strength Index (RSI) is bearish. The closest support level for MATIC is at $0.76, while the closest resistance is at the channel’s midline at $1.40.
Despite this bearish forecast, moving above the resistance line and reclaiming the previous channel’s support line will mean the trend is bullish. A bearish scenario is the most probable, however, with a downward movement toward the next support level at $0.76. Investors should conduct their own research and consult with a professional before making any financial decisions.
