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For a while, MATIC price was in a consolidation zone, moving between $0.7730 and $0.6233, forming a bearish triangle flag in the process. This is a result of the decline from the high of $0.9288 that occurred days ago which sent MATIC down more than 25%.
Although the price Matic The pair is still consolidating, and is building momentum for a potential breakout. Therefore, it is not recommended to place a trade at this point until the breakout occurs which could be either above or below the consolidation area.
In this article, we will delve into potential price movements when they are likely go ahead Of monotheism occurs. Recently, MATIC’s price and market capitalization have declined, suggesting that bulls may be waiting for this rally.
At the time of writing, MATIC’s price is down 2.97%, trading approximately $0.6926 below the 100-day simple moving average (SMA) over the past 24 hours. Its market capitalization fell more than 5% in the past day to $6.91 billion. Meanwhile, its trading volume rose to $374 million, indicating an increase of more than 1% in the past day.
MATIC on the 4-hour chart
Looking at the 4-hour time frame chart, MATIC is trying to break below the 100-day moving average, indicating that prices may break below the consolidation area and move up. Bearishly.
Also, using the Relative Strength Index (RSI) to analyze the price action in the 4-hour time frame, we can see that the RSI line has crossed the 50% level, heading towards the oversold zone, indicating that the price may break below. Unification area.
At the same time, on the daily time frame, it can also be observed that the price is trying to break below the descending triangle outside the consolidation zone below the 100-day simple moving average.
The 1-day RSI also indicates that MATIC price may break below the consolidation zone as the RSI signal line has broken below the 50% level and is heading towards the oversold zone. Specifically, this suggests that sellers are undercutting buyers in the market.
With this strength of sellers in the market, MATIC will continue to move lower when there is a breakout below the consolidation area.
Possible price action in case of a breakout
Conclusively, if there is a break above the consolidation area, MATIC will continue to move upwards towards the $0.9488 resistance level. If the price breaks this resistance level, it may rise higher to test the resistance level at $1.0968.
Conversely, if MATIC price falls below the consolidation zone, the price may start moving towards the $0.5030 support level, in continuation of its downtrend. It may continue to move down towards the 0.3132 support level if the price falls below this level.
Featured image from Adobe Stock, chart from Tradingview.com
