Matic Surpasses Key Resistance: Can This Breakout Sustain?

MATIC price recently broke above a key resistance, indicating a positive development. However, there has been a modest increase in its price over the past week, with only a 2% increase. Despite the breakout, MATIC remains close to an important support line on its daily chart.

The technical outlook suggests that the recovery may take some time as the bears dominate the price. There is a decrease in both demand and accumulation on the daily time frame.

While MATIC is currently above a key resistance, the absence of buyer support could lead to a significant downside in price before any recovery occurs on the daily charts.

If the bears apply further pressure, MATIC is likely to resume trading sideways, fluctuating between $0.81 and $0.84. Uncertainty in bitcoin price action as it fluctuated from $27,000 and pulled back from that level affected altcoins, weakening their respective price action. MATIC market capitalization has declined, indicating a higher level of selling activity than buying activity.

Matic Price Analysis: Intraday Chart

At the time of writing, MATIC was trading at $0.86. It successfully surpassed the $0.84 resistance in the near term, but the buyer sentiment remained weak. The next important resistance for the coin is $0.87, and breaking this level could start a recovery trend.

However, if the sellers persist, the altcoin could decline towards $0.81 and potentially drop below $0.80. The key to regain control of the price lies in MATIC, which is likely to rise above $0.86 in the upcoming trading sessions. MATIC had a low trading volume in the previous session, indicating a decrease in buying strength.

technical analysis

Matic faced challenges in generating strong buying support during April and May, resulting in a slowdown in demand. The Relative Strength Index (RSI) signaled a decline, with the indicator remaining below 40, highlighting the dominant presence of sellers in the market.

Furthermore, the price declined below the 20-simple moving average (SMA) line to indicate that sellers were driving the price momentum. However, if MATIC overcomes the $0.87 level, it will trade above the 20-SMA line.

In contrast, altcoins displayed a buy signal on the daily chart, albeit with a decrease in size and strength. The appearance of a green histogram on the awesome oscillator signals a buy signal for the altcoin, indicating price momentum and a potential reversal.

Additionally, Bollinger Bands, which measure price volatility and the likelihood of price volatility, remained narrow and wide. However, there was slight convergence in the bands, suggesting that the price may not undergo significant volatility or volatility in the immediate trading sessions.

Featured image from Adobe Stock, Chart from TradingView.com