The early week relief rally in MATIC price faced renewed bearish momentum when it encountered resistance at $0.687. Following this, the cryptocurrency exhibited three consecutive red candles in the daily timeframe chart, suggesting a continuation of its downward trajectory. Investors now await to see if the price will retest the $0.51-$0.5 support, which could potentially determine whether the Polygon coin is ready for a new recovery cycle.
With the release of Polygon 2.0, described as the Value Layer of the Internet, MATIC price has increased by 2.5%. The intraday trading volume in MATIC currently stands at $562.5 million, marking a 28.5% gain. The longer-term correction phase in MATIC is governed by a resistance trendline that has been in place for several months.
On June 10th, the MATIC price exhibited a long-tail rejection candle at the $0.51-$0.5 support level, signaling a rise in demand pressure for the discounted coin. In the coming days, if the price retests this support level and displays similar signs of rejection, a new bullish reversal could be triggered by the buyers. However, this potential relief rally may be limited by the overhead resistance trendline (Red) that has dictated the downtrend for the past four months.
On the other hand, a breakdown below the $0.5 support has the potential to push prices to the lower $0.321 support level. The current bearish pressure in the market, combined with the discounted price sentiment, might cause MATIC’s price to experience high volatility in the coming days. Given this anticipated consolidation, traders should remain cautious and closely monitor the $0.5 technical level and the downsloping trendline. For MATIC price to revisit the $1 mark, a breakout above the overhead trendline would be essential.
Additional market indicators include the Exponential Moving Average (EMA) and the Relative Strength Index (RSI). The 50-day EMA slope currently acts as an extra resistance against buyers, while the daily RSI slope resides in the oversold region, indicating instability and a higher possibility of a bullish reversal.
In conclusion, the latest market trends and technical indicators for MATIC suggest potential volatility and consolidation in the coming days. Traders and investors should be mindful of key levels such as the $0.5 support and the downsloping trendline when considering their next moves. It’s crucial to conduct thorough market research before investing in cryptocurrencies, as the presented content represents 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
