MATIC Below Key Support Levels: What’s Next?
April 24 2023 - 1:16AM
NEWSBTC
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. Related Reading: Avalanche Struggles Under $18 – More
Losses Seem Likely 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.
Related Reading: What’s Next For Ethereum Price As It Drops Below
$2,000? 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. Featured Image From
UnSplash, Charts From TradingView.com
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