Amidst the latest positive actions in the overall crypto market, Matic followed the pattern and increased by 12% in a week following a slight break through a crucial descending trendline. More buying could take place if volatility is enhanced.
After marking the highest price level at $1.5 earlier this year, Matic’s price started to decline with lower lows and lower highs formation.
This formation led to a 65% crash to the $0.50 level in June (marked as the yearly low) after four months of consistent selling. Fortunately, the bulls reacted strongly to that level and the price bounced back and retraced to the high of $0.89 in the following month.
It rejected that high, initiated a fresh drop and rolled back to the yearly low. Matic established a base support there during last month’s recovery and slowly bounced back. This bounce triggered a mild price break above the descending trendline, which has been serving as resistance since February.
We can expect the price to advance higher in the coming days if the demand level increases. From the look of things, buying pressure is currently low on the higher time frame. However, on the lower time frame, Matic has turned bullish as buying pressure looks strong at the moment.
Regardless of the positivity surrounding the market lately, losing the recent low may result in another sell-off towards $0.1. Despite the ongoing recovery, Matic remains bearish on the daily chart.
Matic’s Key Levels To Watch
Source: TradingView
The price just flipped $0.56 and now aiming to take the $0.70 resistance level. If Matic advances higher, the next resistance to keep in mind is $0.78 and $0.89, where it initiated a drop from in July. More short-term rallies should be expected if the price crosses over.
While June’s crash level remains the last defence line for the Bulls to defend, a breakdown would cause a massive breakdown to $0.40 and $0.30.
Key Resistance Levels: $0.64, $0.70, $0.78
Key Support Levels: $0.50, $0.40, $0.30
- Spot Price: $0.568
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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