The short-lived gain by MATIC is taken by many experts as a sign of a recovery that may happen before the New Year. It is something that many want to believe, but the foundation for this particular analysis is based on announcements that will start yielding tangible results only in 2023.

Polygon is a promising network that continues building on top of solid technology. However, the immediate future of the MATIC token depends on speculations and public discourse.

The technical analysis paints a different picture

The 3-week RSI shows that the price has reached an equilibrium with the RSI value hovering just above 50 points for over a month.

The recently formed pattern says that MATIC usually experiences a short-lived spurt toward a new weekly high before a massive price correction. It is in line with what has been happening so far in the market as a whole.

The last time RSI slipped under 50, MATIC was traded at $0.68, which would be a massive 27% drop compared to the current price of the asset ($0.93).

This may very well happen, considering the grim situation in the market and the variety of issues that retail traders have to deal with after the FTX debacle.

A recovery is possible, and this unstable equilibrium may result in a new bull rally, with the price reaching $1.3 (a 30% growth) as it did previously during the last RSI spike.

However, the opposite scenario is just as likely. Retail traders working with MATIC have to accept that the corridor within which the asset moves is defined by a gigantic 30% margin in both directions.

Patterns are not always true

RSI is a good indicator to search for swings and price corrections. However, it is close to being useless when the market does not want to risk, and traders simply correct the price, trying to keep within a certain range.

So far, Polygon has been doing well compared to other tokens that represent the technological sector of the industry. Hopefully, it can get through the current winter unscathed.