- Matic dropped below significant level of $0.58
- Volume in Matic on daily time frame is touching its lows
- Next support of Matic is at $0.45
On a weekly timeframe, we can observe a downtrend in Matic within a parallel channel, following the pattern of Lower Highs and Lower Lows, which constitutes a bearish structure. Moreover, if we connect the lows of June 2022 and June 2023, we can identify a robust support line. However, this line has now been breached, leading to a decline in Matic’s price. The Relative Strength Index on a weekly level is at 33, indicating an oversold condition that is yet to manifest fully. The Moving average convergence divergence has remained in negative territory for over 4 months.
Read More: Cracking the Code of Bitcoin’(BTC) Price Plunge: Insights into Market Sentiments and Beyond
The level of $0.58 served as a sturdy support for Matic, providing strength during the Bitcoin crash from $30,000 to $25,000 in June 2023. Subsequently, Matic’s value surged above $0.85. However, during the recent crypto market crash, Matic failed to maintain this support and commenced a breakdown. Presently, Matic is trading at $0.54. It has already closed below $0.58 and is undergoing a decline. Matic’s Relative Strength Index is at 22, and the Moving average convergence divergence remains in negative territory, indicating an oversold condition. This suggests a potential minor rebound in the upcoming days.
Read More: NASDAQ’s Drops and it Echo’s on Bitcoin – Navigating Market Turbulence
Nevertheless, comprehending the current market sentiments is crucial. If the sentiments exhibit sufficient strength, a recovery to $0.58 might be possible. Nevertheless, our previous sentiment analysis indicates poor market performance, highlighted by the dismal weekly closure last week. A staggering amount of over $1 Billion was liquidated from the market in a single day, instilling fear among retail traders. Moreover, market volume remains lackluster. The sentiments are decidedly bearish for now. Should we observe a decline in traditional markets like NASDAQ and S&P500, a corresponding drop in cryptocurrency prices can be expected.
Also Read: Decoding Litecoin’s Trajectory: From Bullish Patterns to Bearish Realities
Conclusion: –
In conclusion, the analysis of Matic’s price trends and market dynamics reveals a prevailing bearish sentiment. The weekly timeframe showcases a downtrend within a parallel channel, characterized by Lower Highs and Lower Lows, indicating a bearish structure. Despite a previously robust support level at $0.58 during the Bitcoin crash, Matic’s recent inability to sustain this support during the crypto market downturn suggests vulnerability. The breach of a strong support line formed between the lows of June 2022 and June 2023 further substantiates this downward trajectory.
Technical indicators, such as an Relative Strength Index of 22 and a persistently negative Moving average convergence divergence, signify an oversold condition and reinforce the potential for a minor rebound. However, the broader sentiment of the market remains pessimistic, as evidenced by the substantial liquidation and poor weekly closure. The absence of substantial trading volume and concerns stemming from traditional market declines only accentuate the prevailing bearish sentiment. While a modest recovery to $0.58 might be feasible under stronger sentiment, the current climate suggests a cautious outlook, with the possibility of further price declines in line with broader market trends.
