In this new Wednesday crypto nugget, we bring you a technical analysis of the MATIC cryptocurrency. Due to the current market situation, the rebound in which the asset is part is aborted. But, is MATIC finished? Will he register a bearish leg? Now let’s identify the key levels to watch in the asset and the bias we may favor in the next few days as well as the next few weeks. Without further ado, let’s jump right into TradingView.
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MATIC is rejected because of its dynamic resistance
After moving to a support at $1.30, MATIC began a sharp decline from April 2022. An old resistance, dated March and April 2021, acted as support, allowing MATIC to bounce back in the summer of 2022. However, MATIC was rejected three times of weekly MA100. This confirms the presence of dealers and the inability of MATIC to overcome this dynamic resistance.
Furthermore, you can see that the asset failed to recover the technical level of $1.30. It registered a wick before closing below MA100, confirming the importance of this second level. To hope for a strong strong leg, the goal is simple : to overcome the MA100 in the first place and then, in the second step, to register a close above 1.30 dollars.
Finally, on a weekly scale, we see a state of doubt because the asset is currently moving between the MA100 at $1.07 and the trio of EMAs including the EMA13 which is at $0.88. Also, support has been built since July at $0.72. If MATIC loses its EMA13 and closes below the support we just mentioned, bearish intentions should be considered.
What levels will MATIC look at in the next few weeks?
Now we can use the volume profile on a daily scale to add some level that we didn’t have a chance to identify on a weekly scale. First of all, you can see the difficulty of MATIC in removing the High Value Area for $0.97. In short, MATIC reached resistance at $1.30 before pulling below the VAH and the EMA trio. Currently, MATIC is advancing under this set of EMAs as well POC while remaining above its MA100. In the next few days, the asset is likely to recover. Apart from the strong scenario we mentioned with a recovery from $ 1.30, what should be considered if there is a bearish return with a loss of the MA100?
First of all, it is necessary to observe the first High Volume Node which is at $0.83. If this level is broken, MATIC will return to the support we already know at $0.72. Since July, MATIC has never moved below this level. Destruction can be a negative sign: a strong deterrent for sellers to acquire land. In this framework, MATIC can return to $0.59/$0.60. Finally, before considering the return of $0.38, the asset can stop at Low Price Area.
We are at the end of this technical analysis of MATIC cryptocurrency. At the moment, the asset is in a complicated situation because it compresses between several technical levels on a daily scale. Over the next few days, MATIC is likely to experience some volatility. On a weekly scale, we see the asset holding above the EMA13. If this dynamic support breaks and the MATIC returns below the daily MA100, we can confirm the bearish bias, which will lead us to monitor the bearish objectives identified in the second part of the analysis.
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