• 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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves.

More Bitcoin News

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic (ETC) saw the headwinds that triggered the massive sell-off of 2022 fade a bit to the background in the first weeks of 2023. That resulted in bulls returning to life after a hibernation of almost five consecutive straight months.

More Ethereum Classic News

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple, the cross-border remittance giant is likely to win its legal battle against US financial regulator, the Securities and Exchange Commission (SEC) according to crypto proponent John Deaton.

More Ripple News

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Shiba Inu holders who acquired SHIB more than 11 months ago are holding onto their tokens. These holders have refrained from selling their SHIB holdings since December 2021.

More Shiba Inu News

US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data

US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data

US Dollar Index (DXY) seesaws near 102.00 as the bulls struggle to defend the first daily gains in three, marked the previous day, during early Tuesday’s inactive trading.

Read full analysis

BTC

ETH

XRP