Polygon (MATIC) has been oscillating sideways for several days, waiting for a catalyst to break free from its ongoing consolidation.
However, it appears that MATIC investors might have to wait even longer, as significant resistance is impeding recovery.
Polygon Is Noting Bearish Cues
MATIC’s price has been fluctuating at the upper and lower boundaries of its current consolidation zone. Unfortunately, broader market signals are not supportive, with the Relative Strength Index (RSI) lingering in the bearish territory.
The RSI is a momentum oscillator designed to assess the velocity and change of price movements, scaling from 0 to 100. It is commonly utilized to detect overbought or oversold conditions.
Although the native token of Polygon is not currently oversold, it exhibits substantial bearish momentum, remaining below the neutral mark of 50.0.
However, even if MATIC does receive bullish signals, it might encounter resistance from investors. The Global In/Out of the Money (GIOM) indicator shows that approximately 1.05 billion MATIC, valued at $735 million and purchased between $0.71 and $0.77, is poised for profits.
Given that the upper limit of the consolidation is at $0.74, MATIC would still need to experience a further increase to render this supply profitable.
Failure to surpass this threshold could maintain MATIC’s prolonged consolidation, which appears to be the most probable outcome.
MATIC Price Prediction: Decline on the Cards
MATIC’s price, currently at $0.70, has failed to break through the resistance at $0.74 for the fourth time in the last three weeks. The altcoin is likely to experience another drawdown due to the considerable resistance it faces.
This scenario could see MATIC remaining consolidated in the near term, potentially dropping to the support level of $0.64. Moreover, should the bearish momentum intensify, MATIC’s price might breach this support and descend to a low of $0.60.
On the other hand, if market conditions become favorable, MATIC’s price could break out of its consolidation. This shift would empower MATIC to potentially establish $0.80 as a new support level.
Such a move would also render the 1.05 billion MATIC supply profitable, effectively invalidating the bearish outlook and possibly leading to a further increase in price.
