MATIC Technical Analysis: Sellers At Trendline Undermine Reversal

Key technical points:

Past Performance of MATIC

Since the buyers could not hold the value at $1.30, MATIC prices have been under a downward trend. The decline breaks below the $0.78 support level to reach $0.59 and has destroyed over 65% of the total market price within two months. The bullish support of $0.59 helps cushion the downward trend, leading to a lateral shift in the trend and reversing that bearish trendline.

Source- Tradingview

MATIC Technical Analysis 

The reversal rally that has been seen in MATIC prices suggests a good chance of failure of the breakout because the price action displays an evening star that is forming alongside the bearish candle that is currently in place. Therefore, traders should expect the negative retracement to break $0.59 and even reach the psychological level of $0.50. The Daily Moving Averages - 20, 100, and 200-day continue to fall in the daily chart, as prices continue to fall after overcoming resistance near 20 DMA.

The RSI indicator shows the slope not rising over the halfway line before it resumes to find support near the fourteen-day SMA. In addition, the MACD indicator displays an increasing trend in histograms that begin a period of rest. However, the MACD and signal lines maintain the upward trend in the positive zone. In a nutshell, MATIC technical analysis indicates a high probability of a bearish reverse to test $0.59.

Upcoming Trend

The bullish breakout of the resistance trendline could cause a price surge above $0.78 and finally reach the critical threshold of $1. But, the most likely outcome is a bullish failure leading to a $0.59 fallout, leading to a $0.50

Resistance Levels: $0.78 and $1

Support Levels: $0.59 and $0.50