MATIC In Consolidation: Key Price Levels To Watch After A Breakout
May 30 2024 - 6:30AM
NEWSBTC
For a while now, the price of MATIC has been in a consolidation
zone, moving between $0.7730 and $0.6233, forming a bearing
triangle flag in the process. This is a result of the drop from its
high of $0.9288 that happened days ago which led to MATIC dropping
by over 25%. Although the price of MATIC is still
consolidating, it is building up momentum for a potential breakout.
So taking a trade at this point is not advisable until a breakout
occurs which can be either above the consolidation zone or below
it. In this article, we will dive into the possible price actions
when a potential breakout from the consolidation occurs. Lately,
MATIC’s price and market cap have dropped, suggesting that the
bulls may be waiting out this spike. As of the time of writing,
MATIC’s price was down by 2.97%, trading around $0,6926 below the
100-day Simple Moving Average (SMA) in the last 24 hours. Its
market capitalization has decreased by over 5% in the past day to
$6.91 billion. Meanwhile, its trading volume has risen to $374
million, indicating a more than 1% increase in the past day. MATIC
On The 4-hour Chart Looking at the 4-hour timeframe chart, MATIC is
attempting to break below the 100-day moving average, suggesting
that prices might break below the consolidation zone and move
bearishly. Also, using the Relative Strength Index (RSI) to analyze
the price action in the 4-hour timeframe, we can see that the RSI
line has crossed below the 50% level, heading toward the oversold
zone, suggesting that the price might break below the consolidation
zone. Meanwhile, in the daily time frame, it can also be
observed that the price attempts to break below the bearish
triangle out of the consolidation zone below the 100-day simple
moving average. The 1-day RSI also suggests that the price of MATIC
might break below the consolidation as the RSI signal line has
broken below the 50% level and is heading toward the oversold zone.
Specifically, this indicates that sellers weaken buyers in the
market. With this strength of the sellers in the market, MATIC will
continue to move downward when there is a break out below the
consolidation zone. Potential Price Actions In The Event Of A
Breakout Conclusively, if there is a break out above the
consolidation zone, MATIC will continue to move upward toward the
$0.9488 resistance level. If the price breaks this resistance
level, it could rise even higher to test the resistance level of
$1.0968. On the contrary, should MATIC’s price break below the
consolidation zone, in continuation of its downtrend the price
might begin to move toward the $0.5030 support level. It might
continue to move downward toward the 0.3132 support level if the
price breaks below this level. Featured image from Adobe Stock,
chart from Tradingview.com
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