Today, on this new cryptocurrency Wednesday, we will be taking a look at the MATIC cryptocurrency from Polygonal blockchain. After falling sharply in May and June last year, it recovered despite an uncertain environment, but has been in a lateralization phase for several weeks. Without further ado, let’s now turn to the charts to analyze the situation of the asset in detail.
A pretty quiet situation on a weekly basis
Currently, we can see it MATIC evolves in a range with a support at $0.757 and a resistance zone (represented in red) located at $0.915/0.950. The current challenge, on a weekly basis, is to monitor a potential exit from the range to take advantage of the future trend that will emerge on the asset. Currently below the EMA25 and EMA32, the buying force will need to be relatively strong to clear these two resistances and the upper limit of the range.
A recovery of all these levels with a clear weekly close above the $0.95 it would be a positive sign to hope for the continuation of the bullish momentum. In this context, with the market as a whole pushing upwards, the MATIC could initially head towards the weekly MA100 at $1.13. If MATIC is not rejected at this level, the next level to watch is the pivot zone which sits at $1.30.
A bounce running out on MATIC?
MATIC under a series of technical resistors
For this second part of the analysis, we can look at a smaller time frame to get a more precise view of the price swings during these last few weeks. In his row, MATIC it sits below a series of technical resistances which are the confluence of the MA100 and the EMA200 as well as the upper limit of the range which sits at the confluence of the Value Area High and the Volume Profile POC.
With so many technical levels to cross, it is preferable to maintain a bearish bias at this time. It is entirely possible that MATIC can make a new push with a wick just above the upper limit to bring out those placed on the lower side of the asset. However, that will partly depend on tomorrow’s economic data release and its strength bitcoins And Ethereum in the face of catalysts that can cause prices to start falling again.
Since it is preferable, given the elements identified, to have a bearish orientation on the MATIC, what are the levels to keep an eye on on the downside? In the beginning, if the price starts a new bearish phase, it will be necessary keep an eye on the trio of EMAs confluent with the HVN at $0.80. A loss of this zone will pave the way for the price to return to the green zone at $0.76, which buyers must imperatively preserve so that MATIC continues its evolution in the range. If this zone is lost, three levels on the chart must be monitored without the price being forced to return there. These are found $0.70, $0.605 and $0.535.
Here we are at the end of this analysis of the MATICs on a weekly and daily scale. For the time being, we are dealing with an asset that is trading within its range on a weekly basis and which, on a daily basis, is trading below a number of technical levels despite the rebound that started a few days ago. Tomorrow afternoon there will be a series of economic data releases that will certainly have an impact. According to US inflation and employment data, the bearish bias we currently have may be set aside.
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