In this new Wednesday crypto nugget, we bring you a technical analysis of the MATIC cryptocurrency. Given the current market conditions, the rebound in which the asset was part was aborted. However, is it over for the MATIC? Will he register a bearish leg? Today we will identify the key levels to watch on the asset and the bias we can favor for 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 got rejected on its dynamic resistance
After moving on a support at $1.30, MATIC started a powerful decline from April 2022. A former resistance, dated March and April 2021, acted as support, which allowed MATIC to bounce back in the summer of 2022. However, MATIC got rejected three times on the weekly MA100. This testifies to the presence of sellers and the inability for MATIC to overcome this dynamic resistance.
Additionally, you can see that the asset failed to retake the technical level at $1.30. It registered a wick before closing below the MA100, which testifies to the importance of this second level. To hope for a powerful bullish leg, the goal is simple : to overcome the MA100 in the first place and then, in a second step, to register a close above 1.30 dollar.
Finally, on a weekly scale, we can see a state of indecision since 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 discussed, bearish objectives should be considered.
What are the levels to watch on MATIC over the next few weeks?
Now we can use the volume profile on the daily scale to add certain levels that we had not had the opportunity to identify on the weekly scale. First of all, you can see the difficulty MATIC had in getting rid of the Value Area High at $0.97. Briefly, MATIC reached resistance at $1.30 before pulling back below the VAH and the trio of EMA. Currently, MATIC is evolving under this set of EMAs as well as its POC while maintaining above its MA100. Over the next few days, the asset will likely regain volatility. Apart from the bullish scenario we mentioned with a recovery from $1.30, what should be considered in the event of a bearish comeback with a loss of the MA100?
First of all, it will be necessary to monitor the first High Volume Node which stands at $0.83. If this level is broken down, MATIC will return to the support we had already identified at $0.72. Since July, MATIC has never moved below this level. A break down will be a negative sign: a strong hold of the sellers who would gain ground. In this framework, MATIC could return to $0.59/$0.60. Finally, before considering a return to $0.38, the asset could make a stopover on the Value Area Low.
Here we are at the end of this technical analysis of the MATIC cryptocurrency. At the moment, the asset is in a complex situation as 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 can see the asset holding above the EMA13. If this dynamic support breaks down and MATIC goes back below the daily MA100, we will be able to confirm the bearish bias, which will lead us to monitor the bearish objectives that have been identified in the second part of the analysis.
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