Polygon price needs to reset before MATIC bulls can trigger 60% upswing

• Polygon price continues to hover around the $0.941 level for nearly two years. 
• MATIC could drop 25%, allowing sidelined buyers to accumulate around $0.762.
• A bounce here could trigger the Layer 2 token to rally 60% to $1.568.
• A weekly candlestick close below the $0.762 support level will invalidate the bullish thesis.

Polygon (MATIC) price has been consolidating inside a range for nearly two years without a directional bias. With the current market outlook, MATIC could drop lower, allowing long-term investors to accumulate before rallying higher.

Also read: MATIC price dips despite implementation of first RIP on Polygon chain

Polygon price ponders long-term uptrend

Polygon price is positioned perfectly to trigger an uptrend, not just from a technical standpoint but also from a fundamental perspective. As noted in a previous article, there not one but six fundamental reasons why MATIC could trigger an uptrend. 

However, focussing on the technical aspects shows that Polygon price is hovering around $0.941 for nearly two years. This level is the midpoint of the $0.315 to $1.568 range. While MATIC might seem to be bouncing off the aforementioned level, it is likely to drop below $0.906 and potentially retest the $0.762 barrier.

This move would allow the Relative Strength Index (RSI) to reset at the 50 mean level and allow long-term holders to accumulate MATIC at a discount. This spike in buying pressure would propel the Layer 2 token to attempt a retest of the range high at $1.568. In total, this move would constitute a 104% gain from $0.762. 

MATIC/USDT 1-week chart

The crypto market outlook is largely positive and shows signs of continuing the uptrend. But a short-term correction could be likely before the uptrend. If Bitcoin price sheds more value than expected, it could be catastrophic for altcoins, including MATIC. 

In such a bearish case, if Polygon price produced a weekly candlestick close below $0.762, it would create a lower low and invalidate the bullish thesis. This development could see MATIC spiral down 35% and sweep the June 5, 2023, swing low at $0.501.

 

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