Amid market indecisiveness, Matic increased by 7% today following a steady increase in the past few days. While the bulls show signs of commitment, it is important to note that the trend is still bearish.
The last five months of drops saw Matic through an 80% correction as the price reset to a low of $0.335 earlier this month. This low level was rejected and the price traded calmly under the $0.44 level for two weeks.
Following a slight surge in volatility, the level flipped yesterday and the price is now charging towards $0.5, where the latest buying will likely halt. A flip through the price level may bring trading back to July’s high.
An advance bullish move above this high will confirm a slight change in the market character, posing the market for more gains in the short term. The March high is a major level to watch for a long-term market shift.
However, it is important to note that Matic is still under the bears’ radar on the daily chart. In fact, it is yet to establish a base support.
If the price rolls back to the monthly low, we may see a further break into the $0.3 – $0.2 range before bouncing back. A continuous hold at this low could lead to a major recovery in the market.
Matic’s Key Levels To Watch
Now that the price is facing up, the primary resistance to keep in mind for a test is $0.56. Above this level lies the $0.64 and $0.77 resistance levels. If they flip, $1 and $1.3 would be the next major resistance to watch.
If a drop occurs, the last month’s $0.428 low would be considered as close support, followed by the monthly $0.335 low. A crack below these lows could dip the price to $0.3 and beyond.
Key Resistance Levels: $0.56, $0.64, $0.77
Key Support Levels: $0.428, $0.335, $0.3
- Spot Price: $0.475
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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