Connect with us
Active Currencies 14880
Market Cap $2,227,052,547,215.50
Bitcoin Share 50.92%
24h Market Cap Change $1.39

MATIC’s bullish structure might depend on these levels being held

2min Read

Share this article

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

The last couple of days have been tough for MATIC. After hitting $1.80 for the first time in 3 months, the alt moved lower as a result of profit-taking by retail traders. Losses were aggravated once a wider sell-off emerged across the broader market, one which accounted for a near 40% decline in just 3 days.

While buyers did respond with some near-term gains, the 4-hour 200-SMA can be expected to limit MATIC’s resurgence. At the time of writing, MATIC was valued at $1.39, up by 1.5% over the last 24 hours.

MATIC Hourly Chart

Source: MATIC/USD, TradingView

A symmetrical triangle aided MATIC’s recovery as the price climbed above its hourly 50-SMA (yellow). With near-term momentum resting with buyers, the $1.48-level looked ripe for taking. An extended bullish response would allow MATIC to push all the way through to $1.56. This was the bottom line of MATIC’s descending triangle setup.

However, such moves would be short-lived as long as the wider market trend remains bearish. This also coincided with the fact that MATIC was trading close to its 4-hour 200-SMA (not shown). The same could restrict gains going forward.

As MATIC’s symmetrical triangle took shape, a couple of candlewicks dropped as low as $1.11 and $1.18. Interestingly, the aforementioned lines functioned as a critical resistance zone between late-June and mid-July. Flipped to support at press time, this area could come under the spotlight if sellers trigger another market decline.

Reasoning 

According to MATIC’s indicators, bullish momentum was being preserved somewhat. The hourly RSI managed to recover above 50 and flattened slightly above the mid-line. The Awesome Oscillator also shifted above its equilibrium on the back of a bullish twin peak setup.

The Directional Movement Index noted a key crossover between the +DI and -DI lines as near-term control shifted over to the buyers. On the other hand, an ADX reading of 22 meant that the uptrend was easing.

Conclusion 

While there are chances of MATIC pushing through $1.46 and $1.56 due to reactionary buying, the price can be expected to stabilize at lower levels. This stability can be found at $1.30 – A region which has held up since mid-August.

The last resort for MATIC lay at $1.11, from where the market would lose its bullish structure and switch to a bearish trajectory.

Share

A business graduate with a keen interest in emerging markets across South East Asia. As a financial journalist, he covered stocks and market reports across Australia and New Zealand as well.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.