The recent recovery of the MATIC price has hit a roadblock in recent trading sessions, despite its impressive bounce back after surpassing the $0.50 level. While the altcoin saw an 18% increase over the week, it lost 3% of its value in the past 24 hours.
The sentiment in the market remains bearish as demand and accumulation for MATIC have remained low. Although buying strength has attempted to recover, it has not fully met investor expectations.
To stimulate demand in the market, MATIC must overcome immediate resistance levels. Surpassing these levels will be crucial for the altcoin to rally and overcome significant barriers. The decline in MATIC market capitalization indicates a decrease in buying strength.
At the time of writing, MATIC was valued at $0.66. The coin faced resistance at $0.68, but if it can surpass this level, it could potentially drive the price towards $0.73. With further potential, MATIC may even reach $0.77. However, breaching the $0.73 resistance is expected to be challenging for MATIC.
On the other hand, if buyers fail to emerge in the upcoming trading sessions, the coin may continue to decline. MATIC may move towards its local support level of $0.59, and with further downward pressure, the altcoin may trade near $0.57.
The recent session’s trading volume for MATIC also decreased, indicating that sellers have had control over the price. This contributes to the overall bearish outlook for the coin.
In terms of technical analysis, a slight recovery in buying strength has been observed for MATIC, but it may not be sustained unless it moves above the $0.68 level. The Relative Strength Index (RSI) experienced a marginal increase but remained below the half-line, indicating a prevailing dominance of selling pressure.
Furthermore, the asset’s price fell below the 20-Simple Moving Average (SMA) line, reflecting weak demand and suggesting that sellers are currently driving the market’s price momentum.
However, there are some positive signs emerging for MATIC on its daily chart, indicating a potential bullish trend. The formation of buy signals suggests an increase in buying interest, but for this trend to be sustained, continued growth in demand is necessary.
The Moving Average Convergence Divergence (MACD), which tracks price momentum and reversals, has shown green histograms tied to buy signals on the chart. However, the Chaikin Money Flow indicator remains below the half-line, indicating a lower inflow of capital compared to the outflow.
With consistent growth in demand, even if it’s through a slow buildup, the altcoin has the potential to overcome immediate hurdles and achieve further gains. However, if the price remains at its current level, there is a possibility of another dip.
Overall, the MATIC price recovery has faced some challenges, with the altcoin struggling to gain buying momentum and experiencing resistance at key levels. However, there are also signs of potential bullish momentum on the daily chart, indicating that with sustained demand, MATIC could overcome these hurdles and see further gains in the future.
