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MATIC had been consolidating between $1.4 and $1.8 until it faced bearish pressure and declined. Over the last week, it depreciated nearly 16%, with a 6% dip on the daily chart. The technical outlook indicated bearish price action, with a drop in demand and accumulation.
Major altcoins also struggled to surpass their resistance levels as Bitcoin corrected itself. MATIC is currently stable on its local support line, but it broke two crucial price floors, suggesting that bears could dominate upcoming trading sessions.
A further round of bearish pressure could cause bears to take over entirely, causing MATIC to fall through its local support line. On the daily chart, the altcoin’s market capitalization indicated a negative change, implying that sellers were taking control.
MATIC Price Analysis: One-Day Chart
The altcoin had struggled to maintain its value above $1 and dropped to $0.98. The overhead resistance of MATIC was $1.02, but due to a consistent decrease in demand, buyers lost confidence in the asset. If the price can break above the $1.02 resistance level, it may reach $1.06 and recover the bullish momentum.
However, if the price falls below $0.98, the local support line is at $0.96, and if the altcoin’s value drops further, it may break through the support line and trade around $0.90 before seeing any recovery. The last session showed a red volume bar, suggesting a decline in buying pressure on the daily chart.
Technical Analysis
The recent rejection at the $1.14 level resulted in a swift exit of buyers from the market. The Relative Strength Index (RSI) dropped below the halfway mark, suggesting that sellers were dominating over buyers at the moment.
The same reading also indicated that MATIC went below the 20-Simple Moving Average (SMA) line, indicating an increase in selling pressure and that sellers were driving the price momentum in the market.
Breaking above the resistance could enable MATIC to surge past the 20-SMA line, thereby strengthening the bulls’ position.
MATIC has started to form sell signals on the one-day chart in alignment with other technical indicators, indicating a potential dip in price. The Moving Average Convergence Divergence, which indicates price momentum and trend changes, formed red histograms connected to sell signals for the altcoin. Additionally, Bollinger Bands, which suggest price volatility and fluctuation, have opened up, suggesting that MATIC may experience more price volatility in the near future. The broader market strength is also important for MATIC, as it can influence the altcoin’s price movement. Overall, the current technical outlook of MATIC appears bearish. Read More
By: anushsamal
Title: MATIC Below Key Support Levels: What’s Next?
Sourced From: www.newsbtc.com/matic/matic-below-key-support-levels-whats-next/
Published Date: Mon, 24 Apr 2023 05:16:01 +0000
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