MATIC Shows Price Recovery But Can Bulls Hold $0.50 Support?

Over the past 24-hours, Polygon (MATIC) price has shown attempts to reverse its downward momentum. The altcoin has recovered over 4% of its value during this time. However, on the weekly chart, MATIC has experienced a drop of over 27%, allowing it to cross key support levels.

Matic’s technical analysis indicates a bearish sentiment prevailing in the market with low levels of demand and accumulation. Bitcoin’s volatility has affected the price action of altcoins, including MATIC, which has been struggling to hold support levels.

A significant return of purchasing power is required for MATIC to overcome immediate resistance. Additionally, the overall strength of the broader market, especially bitcoin, will affect MATIC and other altcoins. The decrease in market capitalization for MATIC indicates less buying activity for the coin.

Matic Price Analysis: Intraday Chart

At the time of writing, the altcoin was priced at $0.64. The bulls have managed to defend the support level at $0.60, but the sustained lower demand may present a challenge for them to hold it. The immediate resistance level is at $0.67; If crossed, it could face another resistance at $0.73.

On the other hand, if the price declines from $0.64, the bears could take control, which could cause the altcoin to trade below $0.60. Failure to stay above the $0.60 level in the upcoming trading sessions could push MATIC below $0.50. The trading volume for the altcoin has declined in the past session, indicating selling pressure in the market.

technical analysis

Investor confidence in MATIC has decreased since June following a rejection at the $0.76 level. The Relative Strength Index (RSI) indicates that the coin is currently oversold and undervalued, with the RSI falling below both the half-line and the 30-mark.

Furthermore, the price has declined below the 20-simple moving average line, indicating low demand and dominance of sellers driving the price momentum.

To see a revival in demand, MATIC must trade above the $0.70 price. This level becomes crucial for the coin to attract buyers and potentially reverse the current bearish sentiment.

Aligning with the bearish sentiment seen in other technical indicators, the Directional Movement Index (DMI) confirms the negative price direction of the altcoin. The -DI line (orange) was positioned above the +DI line (blue), indicating a prevailing downtrend.

Additionally, the Chaikin Money Flow (CMF), which tracks capital inflows and outflows, was below the halfway line. This indicates that capital outflows were higher than inflows at that time, indicating a reduction in buying pressure.

Featured images from Unsplash, charts from TradingView.com