Recent trading activity has seen MATIC price pull back, targeting the $0.5030 level after a period of sturdy growth that was interrupted by bearish pressure. This sudden drop, driven by growing bearish sentiment in the market, has left traders and investors speculating whether the $0.5030 support level will hold or if further declines are imminent.
As bearish sentiment around MATIC continues to grow, this article aims to analyze the current price action and technical indicators that suggest a sustained decline. The goal is to provide readers with a comprehensive understanding of MATIC’s potential future trajectory.
MATIC was trading at around $0.511 and was down 3.93% with a market cap of over $5 billion and trading volume of over $250 million at the time of writing. Its market cap and trading volume are down 3.88% and 20.31% in the last 24 hours.
Market Review: MATIC’s Recent Results and Current Downturn
On the 4-hour chart, MATIC is in an lively downtrend and is currently trading below the 100-day elementary moving average (SMA) towards the $0.5030 support level. It is worth noting that MATIC previously attempted an upside correction but was stopped at $0.5673.
The 4-hour Composite Trend Oscillator indicates that MATIC may continue its downward move towards the USD 0.5030 level as the signal line has crossed below the indicator’s moving average and both lines are currently trying to cross above the zero line.
On the 1-day chart, MATIC has experienced a three-day continuous bearish move towards the $0.5030 support level, trading below the 100-day SMA. If this bearish momentum continues, the digital asset could fall below $0.5030, extending its downtrend.
Finally, the 1-day composite trend oscillator indicates that the MATIC price is likely to continue the current downtrend as the signal line tries to cross the indicator’s SMA and return to the oversold zone.
Future outlook: potential price development scenarios for MATIC
The current price action of MATIC suggests that the coin is on the verge of extending its bearish move, with $0.5030 being a key point to watch. If the price reaches this level and breaks below, it could trigger a decline towards the $0.3132 support range. Once this level is broken, the crypto asset could experience further price decline towards other lower levels.
However, if MATIC encounters a rejection at $0.5030, it could begin to rally again towards the $0.9488 resistance. It could continue to see additional price gains, potentially challenging the $1.096 level and other higher levels if the $0.9488 resistance is broken.
