The MATIC price recently broke above a key resistance level, indicating a positive development. However, the price increase over the past week has been modest, with only a 2% increase. MATIC has remained close to a critical support line on the daily chart despite the breakout.
The technical outlook suggests recovery may take some time as bears dominate the price. Both demand and accumulation have decreased in the daily time frame.
While MATIC is currently above a key resistance, the absence of buyer support could lead to a significant loss of value before recovery on the daily chart.
If the bears apply further pressure, MATIC is likely to resume sideways trading, fluctuating between $0.81 and $0.84. The uncertainty in Bitcoin’s price movement as it fluctuates from $27,000 and returns from that level has impacted altcoins, weakening their respective price action. The MATIC market cap is down, indicating a higher level of selling activity than buying activity.
MATIC Price Analysis: One Day Chart
At the time of writing, MATIC was trading at USD 0.86. It successfully surpassed the near-term resistance level of $0.84, but buyer sentiment remained weak. The coin’s next significant resistance is at $0.87, and breaking this level could initiate a recovery trend.
However, if sellers persist, the altcoin could fall to $0.81 and possibly below $0.80. The key for the bulls to regain control of the price lies in MATIC, which remains above $0.86 in the coming trading sessions. MATIC’s trading volume in the last session was low, indicating a lack of buying power.
Technical analysis
MATIC faced challenges generating strong buying support in April and May, resulting in reduced demand. The Relative Strength Index (RSI) pointed to a decline, with the indicator remaining below 40, indicating the dominant presence of sellers in the market.
In addition, the price fell below the 20-Simple Moving Average (SMA) line, indicating that sellers were driving the price momentum. However, if MATIC crosses the $0.87 level, it will trade above the 20-SMA line.
In contrast, the altcoin showed buy signals on the daily chart, albeit with diminishing size and strength. The presence of green histograms on the Awesome Oscillator indicated buy signals for the altcoin, reflecting price momentum and possible reversals.
In addition, the Bollinger Bands, which measure price volatility and the likelihood of price swings, remained narrow and broad. However, the bands had a slight convergence suggesting that the price may not undergo significant volatility or fluctuation during the immediate trading sessions.
Featured image from Adobe Stock, charts from TradingView.com
