- MATIC price returns inside the rising wedge.
- Strong support for MATIC is near $1.30, but zero support exists below that value area.
- Market awaits buyers to step in and support price.
MATIC price continues to push lower, facing the same weakness affecting the broader cryptocurrency market. Significant support zones exist below, but failure to hold that support could trigger a sell-off.
MATIC must hold the $1.30 - $1.40 value area; a return above the rising wedge would re-initiate bullish sentiment
MATIC price performed a very bearish price action event last week by returning inside the rising wedge. That bearish price action has continued into the current week. Bears are testing one of the primary support zones at $1.50 and appear to gain control.
Below the $1.50 support zone is the final but most vital support level in the $1.30 value area. The 38.2% Fibonacci retracement, Senkou Span B, Senkou Span A, 2021 Volume Point Of Control and lower rising wedge trendline exist within the $1.30 to $1.40 value area.
As long as MATIC price can maintain a weekly close above $1.45, the threat of collapse can be eliminated. However, some warning signs in MATIC’s oscillators should be observed, specifically on the Composite Index.
The Composite Index has just crossed below its moving averages in neutral territory – usually a very bearish warning sign. However, the Relative Strength Index may mitigate any effect of that bearish signal. MATIC’s Relative Strength Index remains in a bull market territory and is up against a strong support level at 50, a level tested twice and held as support.
MATIC/USDT Weekly Ichimoku Chart
Failure to hold the support levels discussed could result in MATIC returning to the $0.80 value area. Any near-term bearish outlook would be nullified if MATIC can return and close above the rising wedge pattern.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Vitalik Buterin slams controversial gambling project ZKasino following scam allegations
Ethereum founder Vitalik Buterin took to Warpcaster, a new type of social network, to condemn ZKasino, a decentralized gambling platform based on Layer 2 Ethereum protocol zkSync.
Starknet jumps 2% after notice inviting specific groups to claim STRK airdrop
Starknet Foundation addressed the groups within the STRK community that were unable to receive the token’s airdrop during the first round. The Layer 2 chain organized an airdrop event in February.
XRP price capped at $0.55 despite retail holdings nearing all-time highs
Ripple price (XRP) failed to break resistance at $0.55 early Wednesday as traders continue to digest Ripple’s recent response to the Securities and Exchange Commission’s (SEC) allegations of illegally selling XRP as a security.
Binance founder Changpeng Zhao could face three-year jail time
US prosecutors are requesting Binance founder and former CEO Changpeng Zhao (CZ) to serve a three-year jail time, according to a Reuters report published Wednesday.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?