MATIC is trying to recover on its daily chart, as it appreciated by 3% in the same time frame. The past week for the altcoin was negative as it lost more than 9% of its value. The broader market has also remained considerably volatile in the past few weeks, with Bitcoin falling into the $23,000 price zone.
Due to this, most major altcoins have also struggled to break past their immediate price ceilings. Likewise, the technical outlook of MATIC has also maintained a bearish outlook, but the chance of recovery cannot be ruled out.
Demand for the altcoin fell, but if buyers exert a slight push, MATIC could witness increased accumulation in the near term.
At the moment, it is important that MATIC remain above its immediate support level. By doing so, the coin will gain some stability, and bulls could start to take control.
The market capitalization of MATIC also fell, indicating that the number of sellers had increased at the time of writing.
MATIC Price Analysis: One-Day Chart
The altcoin was trading at $1.26 at press time. The immediate resistance for MATIC was $1.29. If the altcoin is to recover, it needs to remain above the bullish order block. A bullish order block starts where the last bearish candle ends before the price starts to depict a turnaround.
The bullish order block stretched from $1.20-$1.22. This range has acted as a support region for the altcoin. MATIC has to trade above this range in order for the bearish thesis to be invalidated.
A fall from the $1.20 mark will take the coin straight to $1.17. This would cause the bears to gain strength. The amount of MATIC traded in the last session was green, which indicated that buyers might be attempting to return to the market.
Although buying pressure was low, the altcoin began to show signs of recovery. The Relative Strength Index was still below its neutral zone, which meant that sellers had the upper hand. Although that was the case, buyers were trying to re-enter the market.
For buyers to take control, MATIC has to trade above $1.29. On the same note, MATIC’s price dropped below the 20-Simple Moving Average line (SMA) as sellers were still driving the price momentum on the chart.
Since the price was above the 50-SMA (yellow) line, it indicated that bullish momentum could slowly build up over successive trading sessions.
Other technical indicators have also pointed towards bearish signals. The Moving Average Convergence Divergence, which indicates the price momentum and the trend reversal had formed red histograms, which were the sell signals for the altcoin.
However, the red histograms were declining in size, which implied that the price was trying to recover. Bollinger bands measure the price volatility and fluctuation on the chart.
The bands were apart and parallel, indicating that there could be an incoming fluctuation. The subsequent trading session is crucial for MATIC’s price.
Featured Image From UnSplash, Charts From TradingView.com