The recent altcoin crash has undoubtedly left its mark on the cryptocurrency market, with MATIC price plunging to a yearly support of $0.518. This represents a nearly 45% tumble within a week, from its peak of $0.95. Despite this, a sharp lower price rejection at $0.518 on June 10th indicates a high accumulation zone for buyers, sparking the question – can they kickstart a recovery from this level?
A potential reversal in MATIC price may encounter intense supply at $0.687 and $0.744. This is backed by the oversold RSI indicator, which reflects that the coin price is trading at a heavy discount. The intraday trading volume for MATIC stands at $364.5 million, showing an 8.67% gain.
Additionally, the long-tail rejection candle at $0.518 support suggests an aggressive accumulation from buyers at lower levels. As a result, the coin price is now 24% higher, from the bottom support to its current position at $0.644.
The discounted MATIC price could entice more buyers, potentially triggering a temporary pullback to $0.745. This anticipated rally might surge the price by 15%-18% to reach the long-coming resistance trendline. However, as the overall trend remains bearish, it is imperative for traders seeking long-entry opportunities to be cautious and wait for a breakout above this trendline.
In light of the recent heavy discount, one could argue that the current relief rally in MATIC is primarily driven by the accumulation of this altcoin at discounted market value. Consequently, a recovery above $0.745 appears less likely. If buyers face supply pressure at the in-between resistance of $0.68, the price may end up revisiting the $0.518 support.
When examining the Exponential Moving Average, it’s worth noting that the coin price has stretched far from its EMA (20, 50, 100, and 200), reflecting instability in the current downtrend. Furthermore, the wide gap between the bearishly aligned MACD (blue) and signal (orange) highlights an aggressive downtrend in MATIC.
While the possibility of a recovery remains uncertain, investors should bear in mind the current market conditions and trends, as well as the ongoing debate around the future of cryptocurrencies. As always, thorough market research is essential before making any investment decisions. The presented content may include the personal opinion of the author and is subject to market conditions. The author or the publication assumes no responsibility for any personal financial loss.
Source: Coingape
