On June 10th, the MATIC price experienced a significant sell-off, resulting in a long-red candle in the daily time frame chart. This sell-off led to the breach of the yearly support at $0.687 and a low at $0.518. While the broken support suggested intense selling pressure in the market, buyers successfully defended the $0.518 level, indicating that it is less likely for the coin price to breach this support in the near future.
Recently, the MATIC price rebounded from the $0.518 level, pointing to a period of accumulation. This may be because buyers are taking advantage of discounted prices to acquire their favorite altcoins. Consequently, the MATIC price surged by 28% to reach the current trading value of $0.663.
However, this reversal does not guarantee a significant recovery but might provide a temporary bounce within the ongoing downtrend. If buying pressure remains high, the altcoin could break through the $0.687 local resistance and surge towards the $0.75 psychological barrier.
A downsloping resistance trendline carrying the current downtrend aligns with the above-mentioned resistance, which could ease selling pressure and allow the downtrend to resume. Notably, the three-day rally in the MATIC price is accompanied by decreasing volume, sparking concerns about the dedication required for a sustained recovery. This bullish upswing might test the overhead trend in the near future, but any reversal signal from it could send the price back to $0.518.
The intraday trading volume in the MATIC stands at $364.5 million, indicating an 8.67% gain. This figure suggests that a bullish upswing to $0.75 might be on the horizon.
Some technical indicators provide more information about this market situation. For instance, the high value of the ADX (38) slope demonstrates the instability of the current downtrend. Additionally, the Bollinger Bands’ downward challenge signifies that underlying selling momentum remains high.
It is essential to keep in mind that the presented content may include personal opinions of the author and is subject to market conditions. Always conduct thorough research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for personal financial loss.
Source: Coingape
