The price of MATIC recently broke above a key resistance level, indicating a positive development. However, its price growth last week was modest, with a 2% increase. MATIC remains close to a critical support line on its daily chart despite the breakout.
The technical view suggests that the recovery may take some time as the bears dominate the price. Demand and accumulation decrease on a daily timeframe.
While MATIC is currently sitting above an important resistance, the loss of buyer support could lead to a significant loss of value before any recovery occurs on the daily chart.
If the bears have more pressure, MATIC is likely to continue trading sideways, fluctuating between $0.81 and $0.84. Uncertainty in the movement of the price of Bitcoin, since it fluctuated from $ 27,000 and returned from that level, affected altcoins, weakening their individual price action. MATIC’s market capitalization fell, indicating a higher level of selling activity than buying activity.
MATIC Price Analysis: One Day Chart
At the time of writing, MATIC is trading at $0.86. It successfully surpassed the $0.84 resistance level in the short term, but the buyer sentiment remains weak. The next key resistance for the coin is $0.87, and a breach of this level could start a recovery trend.
However, if the sellers continue, the altcoin could fall to $0.81 and possibly as low as $0.80. The key for the bulls to regain control of the price lies in MATIC, which remains above $0.86 in the coming trading sessions. MATIC’s trading volume in the previous session was low, indicating a lack of buying strength.
MATIC faced challenges in generating strong purchasing support throughout April and May, resulting in reduced demand. The Relative Strength Index (RSI) shows a decline, with the indicator remaining below 40, which highlights the dominant presence of sellers in the market.
Additionally, the price has dipped below the 20-Simple Moving Average (SMA) line, indicating that sellers are pushing the price on momentum. However, if MATIC breaks above the $0.87 level, it will trade above the 20-SMA line.
In contrast, the altcoin is showing buy signals on the daily chart, albeit with decreasing size and strength. The presence of green histograms on the Awesome Oscillator indicates buy signals for the altcoin, indicating price momentum and potential changes.
Additionally, Bollinger Bands, which measure price volatility and the likelihood of price volatility, remain narrow and wide. However, the bands have little convergence, which suggests that the price may not undergo significant fluctuations or fluctuations in the immediate trading sessions.
Featured Image From Adobe Stock, Charts From TradingView.com