Matic Price Prediction for January: Rally Before Decline

polygon (diplomatic) The price prediction suggests that the short-term relief rally will continue for some time before a sharp decline begins before rejection.

Is there a layer-2 scaling solution for polygons Ethereum blockchain. It serves to turn Ethereum into an internet of blockchains. Furthermore, it helps improve its scalability with respect to decentralized applications (dApps) and smart contracts. it uses -proof-of-stake (PoS) consensus mechanism. There was positive news last week. y00ts, one of the biggest irreplaceable Token (NFT) in collection solana blockchain, announced that it would be moving to the Polygon Network In the first quarter of 2023.

polygon worth Has started a short term rally but has not yet confirmed that the rise will continue in the long term.

Polygon bounces on support

There was an uptrend in MATIC price since September 21 along with a rising support line. The upward movement reached a maximum price of $1.30 on 5th November. However, the price soon fell and then broke the line on 16 December, leading to a low of $0.75 on 19 December. This is a signal that the bullish structure is no longer intact.

However, MATIC bounced off the horizontal support level at $0.77 on December 19 (green icon). RSI Also bounced and is coming from below towards the 50 line.

Due to the breakdown and upcoming bounce, the most likely MATIC prediction for January is a confirmation of the support line as resistance before another decline. This will cause the daily RSI to validate the 50 line as resistance (red circle). Retracing the line indicates that the future price trend is bullish instead.

matic price prediction daily
MATIC/USDT Daily Chart. source: trading view

Matic Price Prediction: Relief Rally Before Fall

Technical analysis from the six-hours chart shows that Polygon price broke above a descending resistance line on December 20, which was the start of an ongoing short-term rally. The breakout was preceded by a bullish divergence on the six-hours RSI (green line). Now, the RSI has crossed above 50, validating the upward movement and confirming the bullish divergence.

MATIC token price now faces resistance at $0.83 at the 0.382 Fib retracement resistance level. If it manages to break above, a lack of resistance above the current price could propel the rise towards $0.87.

If it gets there, it will validate the long-term ascending support line. Afterwards, most likely the MATIC price prediction for January suggests that there will be a downside movement.

Retesting the $0.87 area and the ascending support line in the process would mean that the trend is bullish.

Matic short-term breakout
Matic/UDT six hour chart. source: trading view

To conclude, MATIC price analysis most likely calls for another downside move to the upside towards $0.87 which will lead to a break above the $0.77 support area. Retesting the $0.87 area would invalidate this bearish prediction and suggest that new highs are in store.

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