As a seasoned crypto investor with several years of experience, I’ve seen my fair share of market fluctuations and consolidation zones. The current situation with MATIC is no exception, as the price has been trading between $0.7730 and $0.6233 for some time now. This consolidation zone was formed after a significant drop from its high of $0.9288.
Recently, MATIC‘s price has been trapped within a range, fluctuating between approximately $0.7730 and $0.6233. This price action has formed a bearish triangle flag pattern on the chart. The formation of this pattern follows a significant decline in MATIC’s value from its previous high of $0.9288, which occurred just a few days prior, causing a drop of more than 25% in the token’s price.
The cost of MATIC hasn’t yet broken out, but it’s gathering strength for a possible price surge. Therefore, initiating a trade right now isn’t recommended until this breakout takes place. This could happen if the price moves either above or below the current consolidation range.
In this piece, we’ll explore the anticipated price movements following a potential breakaway from MATIC‘s recent price range. Recent trends indicate that MATIC’s value and market capitalization have declined, potentially hinting at a pause in bullish momentum.
At the moment of composition, MATIC was priced 2.97% lower than before, hovering at approximately $0.6869 under its 100-day Simple Moving Average (SMA) in the last 24 hours. The market capitalization for this cryptocurrency has dropped by over 5% within the past day, amounting to around $6.91 billion. However, there has been a noticeable rise in trading volume, reaching $374 million, which represents a more than 1% increase compared to the previous day.
MATIC On The 4-hour Chart
As a researcher examining the 4-hour chart for MATIC, I notice an effort by the price to dip beneath the 100-day moving average. This potential breach implies that the asset could be on track to fall below the consolidation range, signaling a bearish trend.
In examining the price trend on a 4-hour chart, the Relative Strength Index (RSI) provides valuable insight. At present, the RSI line has fallen beneath the 50% mark, signaling a potential move towards oversold territory. This downturn could imply that the price may soon breach the consolidation zone.
From my perspective as a market analyst, I notice in the daily chart that the price is making an effort to move beneath the bearish triangle that lies just below the 100-day simple moving average. This triangle forms part of a consolidation zone where the price has been trading within its range for some time now.
Based on the 1-day Relative Strength Index (RSI), there’s a sign that MATIC‘s price could drop below its current consolidation. The RSI signal line has dipped beneath the 50% mark and is moving towards oversold territory, suggesting that sellers are gaining ground over buyers in the market.
As a researcher observing the market dynamics, I would interpret the strong seller position as indicative of a potential continuation of downward movement for MATIC once it breaches the consolidation zone.
Potential Price Actions In The Event Of A Breakout
In summary, if MATIC manages to breach the consolidation zone, it is expected to continue climbing and reach the resistance level of $0.9488. If this resistance is surpassed, there’s a possibility that the price will rise further to challenge the resistance at $1.0968.
If MATIC‘s price fails to hold above the consolidation zone, its downtrend may persist and lead the price to test the $0.5030 support level. A further breakdown below that level could push the price down towards the 0.3132 support area. (as a researcher observing the MATIC price trend)
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2024-05-30 14:46